Twa Is Still Flying Barely

The scene on July 30 at the federal bankruptcy court in White Plains, N. Y., was tense. Some TWA creditors were prepared to repossess planes and equipment. Others lined up on the court steps ready to file to push TWA into bankruptcy. But when all appeared hopeless, Carl Icahn engineered a bailout. He appeased creditors, at least for now, with a debt-restructuring plan that calls for TWA to file a prepackaged Chapter 11 bankruptcy in early 1992. If the deal goes through, it will eliminate about $1 billion in debt and leave TWA with $400 million in cash once the restructuring is completed.

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