West Virgnia's Yeager May Sell Its Claims Against Bankrupt Carriers

Yeager Airport's board of directors was scheduled to meet today to consider selling the airport's claims against two bankrupt airlines for about 90 cents on the dollar.

Director Rick Atkinson said bankrupt Delta Air Lines Inc. owes the airport $44,000 and Northwest Airlines Inc., the corporate parent of regional carrier Mesaba Airlines, owes the airport $36,000.

As the airlines prepare to emerge from bankruptcy they are going to offer stock to the airport and other unsecured creditors, Atkinson said. But some hedge funds are offering to buy the airport's claims against the airlines for around 90 cents on the dollar. Also, the funds offer immediate payment, he said.

"In the first U.S. Air bankruptcy we got 50 cents on the dollar paid out over nine months," Atkinson said. "In the second U.S. Air bankruptcy we got 75 cents on the dollar paid out over nine months. Here we have offers to sell our claims in the 90-cents-on-the-dollar range and receive immediate payment.

"Would we do better if we take the stock and pay attention to the market and eventually sell it? No. 1, we would have to overcome the question, can we own and sell stock? I'm not sure we can. No. 2, it is not what we do. You would have to time it right in the stock market. You could lose money."

Atkinson said the airport has "quite a few" offers for its claims. He said he will recommend that the board of directors "take the highest and most responsible offer, sell our claims, take the money and be done with it. In my opinion it's good fiscal management since we have the opportunity to almost become whole."

Today's meeting was to be held by conference call.

"I will fax out the offer sheets and we will make a recommendation," Atkinson said. "Hopefully we'll get a vote, authorize the chairman to sign the sheets accepting the offers - effectively selling our claims - and we'll collect our money by the end of the week."

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