America West Airlines Pass-Thru Trust
Certificates Rated by S&P
NEW YORK, NY - June 12, 1997 - Standard & Poor's today has
assigned various ratings to America West Airlines Inc.'s 1997-1
pass-through trust certificates (see below).
The certificates, totaling approximately $95 million, will be
serviced by cash flows from equipment notes financing four
A320-231 jet aircraft used by America West (corporate credit
rating single-'B'-plus). The aircraft were originally leased by
GPA Group plc to America West and subsequently sold to new
investors through leveraged leases. The refinancing involving the
rated pass-through certificates removes GPA Group; the leases now
run from America West directly to various owner trusts, with
amounts owed on the leveraged lease debt (equipment notes) now
passing through to certificate holders.
Standard & Poor's ratings are based on the published
criteria for "enhanced equipment trust certificates."
The criteria provide for ratings higher than an airline's normal
equipment trust certificate rating when aircraft financing is
structured to include:
- A dedicated liquidity facility (provided in this transaction
by Kredietbank N.V. and available to the class A, B, and C, but
not class D certificates) sufficient to service rated debt for 18
months in the event that the underlying aircraft leases are
rejected by an airline in bankruptcy; and
- Conservative overcollateralization by modern technology jet
aircraft to increase the probability of repaying debt principal,
if necessary by selling repossessed equipment.
The loan-to-value on the various classes of debt, assuming
depreciation per Standard & Poor's criteria and at the
maximum point during the life of the rated securities, is as
- Class A Certificates: 39.8%; -- Class B Certificates: 54.7%
(cumulative, including above); -- Class C Certificates: 69.6%
(cumulative, including above); and -- Class D Certificates: 81.9%
(cumulative, including above). OUTLOOK: Stable. Standard &
Poor's anticipates that these ratings would change if and as the
equipment trust certificate rating of America West (currently
double-'B', stable outlook) changes. Accordingly, the long-term
rating outlook on these securities is also stable. However,
ratings are not expected to change with variations in the prices
of jet aircraft, since the criteria assume periodic cyclical
changes in aircraft values. - CreditWire
RATINGS ASSIGNED $45.8 mil. America West Airlines 1997-1 Pass
Through Trusts Class A Certificates due 1/2/2010 AA- $17.0 mil.
America West Airlines 1997-1 Pass Through Trusts Class B
Certificates due 1/2/2007 A- $17.1 mil. America West Airlines
1997-1 Pass Through Trusts Class C Certificates due 7/2/2005 BBB-
$14.2 mil. America West Airlines 1997-1 Pass Through Trusts Class
D Certificates due 7/2/2001 BB
SOURCE Standard & Poor's CreditWire /CONTACT: Betsy R.
Snyder, 212-208-1585 or Philip Baggaley, 212-208-1309, both of
Standard & Poor's CreditWire/
Dart Group Corporation Announces Extension
of Conditional Settlement Agreement in Principle with Herbert E.
LANDOVER, Md., June 12, 1997 - Dart Group Corporation (Nasdaq:
DARTA) announced today a further extension of the conditional
settlement agreement in principle initially reached on April 21,
1997, between Dart and Herbert H. Haft, the Company's founder and
its present Chairman and Chief Executive Officer.
As announced on April 22, implementation of the conditional
agreement in principle is subject to the negotiation of a
definitive settlement agreement satisfactory to Dart and Dart's
receipt of satisfactory advice from its investment bankers. The
conditional agreement in principle stated that it would terminate
if a definitive settlement agreement were not entered into by May
9, 1997. As previously announced, that date was subsequently
extended first to May 23 and then to June 12, 1997. Dart and
Herbert Haft have not entered into a definitive settlement
agreement, and the agreement in principle has been amended to
state that it will terminate if a definitive agreement is not
entered into by July 11, 1997.
The agreement in principle continues also to be conditioned on
Dart's entering into a supplemental settlement with Ronald Haft
and a comprehensive settlement with Gloria, Robert and Linda
Haft. Negotiations with respect to these related settlements are
As previously announced, closing of the transactions
contemplated by the agreement in principle also is subject to (1)
final and non-appealable action by the Delaware Court of Chancery
or the Delaware Supreme Court approving all of the terms of the
settlement, terminating certain putative derivative actions
pending with respect to Dart in the Delaware Court of Chancery,
and approving the October 1995 settlement between Dart and Ronald
Haft and the supplemental settlement between Dart and Ronald
Haft, and (2) final and non- appealable action by the U.S.
Bankruptcy Court approving the effectiveness of Chapter 11 plans
of reorganization for certain real estate entities [Combined
Properties, Inc., and its affiliates] owned by Mr. Haft and
members of his family.
The parties are continuing to have difficulty resolving
outstanding issues in the negotiations and Dart's financial,
corporate and legal evaluation is ongoing. There can be no
assurance that a definitive settlement agreement between Dart and
Herbert Haft will be entered into and that the transactions
contemplated by the conditional agreement in principle will be
implemented. If a definitive settlement agreement is not reached
by July 11, there can be no assurance that the parties will agree
to another extension of the conditional agreement in principle.
In its negotiation with members of the Haft family, Dart is
represented by the Executive Committee of its Board of Directors,
comprised of Larry G. Schafran, Chairman, Douglas M. Bregman,
Esq. and Bonita A. Wilson.
SOURCE Dart Group Corporation /CONTACT: Larry G. Schafran of
the Dart Group, 301-731-1502/