USAir foresees new loosening of credit terms

April 04, 1992|By States News Service

USAir Group Inc. says it may require further loosening of financial guidelines governing its $855 million credit agreement in the fourth quarter of 1992 if its operating results don't improve.

In its annual financial report, the airline said it expects some financial covenants in its credit agreement may require amendments if industry conditions do not improve and cost-cutting and revenue-improvement moves fail.

Covenants in the credit agreement involve calculations of minimum net worth, the ratio of liabilities to net worth and a fixed charge coverage ratio.

USAir officials were not available for comment. The airline, which lost $305 million last year, amended its credit agreement twice in 1991, to reduce available borrowings and to relax financial restrictions and collateralize borrowings.

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