Icahn ready to step down at TWA
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE CORPORATE raider Carl Icahn is preparing to step down as chairman of Trans World Airlines as part of a plan under which a group of creditors and employees would assume ownership of the troubled carrier.
The plan, which will have to be cleared by the federal bankruptcy court, envisages creditors swapping around dollars 1bn ( pounds 530m) in debt obligations for a 55 per cent stake in TWA. The remaining 45 per cent would be acquired by airline employees in return for lower wages and changes to working practices.
Mr Icahn would invest more than dollars 100m to provide liquidity pending court approval of the deal, which would also involve TWA emerging from Chapter 11 bankruptcy protection.
The plan emerged from a weekend of talks in New York between Mr Icahn, members of the creditors' committee and representatives of three unions, the International Association of Machinists, the Air Line Pilots Association and the Independent Federation of Flight Attendants. TWA employs a total of 28,000.
A spokesman for one of the unions noted that, although agreement in principle had been reached, the deal was not yet signed and sealed. Mr Icahn has made few friends at TWA, selling routes to raise cash and holding back on investment.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments