TWA Ruling Set For Monday

A U.S. Bankruptcy Court judge will rule on Monday (March 12) on American Airlines’ bid to buy St. Louis-based Trans World Airlines. Judge Peter Walsh heard two days of testimony from the five bidders in the hunt for the airline’s assets. The judge also delayed a ruling on the $130-million increase in special financing sought by TWA so it can keep operating. Members of TWA’s management favor the American Airlines’ proposal, which calls for a $742-million buyout and assumption of $3-billion in TWA leases. While management supports the American offer, TWA’s machinists’ union – its largest union – has concerns because of uncertainty over the future of existing employees.