KIWI has Received a $16 Million Bid From
KIWI Holdings, Inc.
NEWARK, N.J., June 13, 1997 - KIWI
International Air Lines (KIWI) announced today it has
received a bid from KIWI International Holdings for substantially
all of the airline's assets. This will preserve KIWI as an
operating airline and bring it out of bankruptcy. The purchase
price is valued at approximately $16,000,000 and will be
presented to the U.S. Bankruptcy Court, in accordance with
bankruptcy procedures.
KIWI International Holdings is a corporation formed by Dr.
Charles Edwards. Dr. Edwards/Edwards - Wasatch Enterprises, LLC
has provided over $10 million in financing to KIWI. This offer
and the financial re-structuring of KIWI was jointly developed by
KIWI Holdings and KIWI's current management. It is expected that
this transaction will be considered for approval by the U.S.
Bankruptcy Court in Newark at a hearing in early July.
Dr. Edwards plans to retain current management and employees
as well as the airline's major contractual relationships. KIWI
will honor the use of previously issued tickets. The airline
plans to announce several new destinations and ticket sale
promotions as it emerges from bankruptcy.
"On behalf of the employees and loyal passengers, this is
a tremendous boost for KIWI because it will finance the
continuation of the airline," said Jerry Murphy, President
and CEO. "The change in ownership will preserve and build
upon KIWI's award-winning service. Passengers and travel
professionals will notice only new cities, aircraft, and further
expansion."
KIWI serves Newark, Chicago, Atlanta, Orlando, West Palm Beach
and Las Vegas. It will begin San Juan service on June 15. KIWI
has over 600 employees and eight 727-200 aircrafts. Its perfect
flying record is supported by pilots who average 23 years flying
experience, and mechanics who average 18. Reservations are
available from any travel agent or by calling 1-800-JET-KIWI.
SOURCE KIWI International Air Lines/CONTACT: Rob Kulat of KIWI
International Air Lines, 201-645- 8445/