In re US Airways, Inc.

Full title: In re: US AIRWAYS, INC., et al., Chapter 11 Debtors

Court: United States Bankruptcy Court, E.D. Virginia, Alexandria Division

Date published: Nov 22, 2004

Case No. 04-13819-SSM Jointly Administered (Bankr. E.D. Va. Nov. 22, 2004)

Opinion

Case No. 04-13819-SSM Jointly Administered.

November 22, 2004.

Brian P. Leitch, Esq., Daniel M. Lewis, Esq., Michael J. Canning, Esq., ARNOLD PORTER LLP, Denver, Colorado, and Washington, DC and New York, New York.

Lawrence E. Rifken, Esq., Douglas M. Foley, Esq., David I. Swan, Esq., McGUIREWOODS LLP, McLean, Virginia, Counsel to the Debtors and Debtors-in-Possession.

ORDER AUTHORIZING AND APPROVING LETTER AGREEMENTS WITH MANSFIELD OIL COMPANY AND AUTHORIZING AND APPROVING PRE-PETITION SETOFFS IN ACCORDANCE THEREWITH

STEPHEN MITCHELL, Bankruptcy Judge

Upon the motion dated November 4, 2004 (the "Motion")² wherein the Debtors and debtors-in-possession in the above-captioned cases moved this Court for an order authorizing and approving the Mansfield Letter Agreements by and between the Debtors and Mansfield Oil Company and authorizing and approving pre-petition setoffs in accordance therewith; the Court finds that (i) it has jurisdiction over the matters raised in the Motion pursuant to 28 U.S.C. §§ 157 and 1334; (ii) this is a core proceeding pursuant to 28 U.S.C. § 157(b)(2); (iii) the relief requested in the Motion is in the best interests of the Debtors, their estates and their creditors; (iv) proper and adequate notice of the Motion and the opportunity for hearing thereon has been given and that no other or further notice is necessary; and (v) good and sufficient cause exists for the granting of the relief requested in the Motion after having given due deliberation upon the Motion and all of the proceedings had before the Court in connection with the Motion. Therefore,

2 Unless otherwise defined herein, all capitalized terms shall have the meaning ascribed to them in the Motion.

IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:

1. The Motion is granted.

2. The Mansfield Letter Agreements between the Debtors and Mansfield, attached hereto as Exhibits 1, 2, and 3 are hereby authorized and approved.

3. The setoff of mutual pre-petition obligations between Mansfield and the Debtors, as set forth in the Motion, are hereby authorized and approved and the automatic stay provisions of section 362(a) are modified to allow such setoffs.

4. The Debtors are authorized to reinstate the deposits on a post-petition basis, as set forth in the Mansfield Letter Agreements.

5. The Court shall retain jurisdiction to hear and determine all matters arising from the implementation of this Order.

EXHIBIT 1

EXHIBIT 2

EXHIBIT 3