IN RE US AIRWAYS GROUP, INC., (Bankr.E.D.Va. 2003)

In re: US AIRWAYS GROUP, INC., et al., Chapter 11, Debtors.

Case No. 02-83984-SSM, Jointly AdministeredUnited States Bankruptcy Court, E.D. Virginia, Alexandria Division.
April 24, 2003

John Wm. Butler, Jr., John K. Lyons, SKADDEN, ARPS, SLATE, MEAGHER
FLOM (ILLINOIS), Chicago, Illinois, for Reorganized Debtors.

Lawrence E. Rifken, Douglas M. Foley, McGUIREWOODS LLP, McLean, Virginia, for Reorganized Debtors.

Edward J. Meehan, Alexander W. Powell, Jr., Michelle A. Zamarin, SKADDEN, ARPS, SLATE, MEAGHER FLOM LLP, Washington, DC., for Reorganized Debtors.

ORDER APPROVING SETTLEMENT BETWEEN US AIRWAYS, INC. AND THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY
STEPHEN S. MITCHELL, United States Bankruptcy Judge

Upon the motion dated April 4, 2003 (the “Motion”)[1] , wherein US Airways Group, Inc. (“Group”), along with the other reorganized debtors under the plan of reorganization confirmed in these cases (collectively, the “Reorganized Debtors”[1a] ), moved this Court for an order approving a settlement (the “Settlement”) of a portion of the proof of claim filed by the Port Authority of New York and New Jersey (the “Port Authority”), the Court finds that: (i) it has jurisdiction over this matter under 28 U.S.C. § 157 and 1334; (ii) this is a core proceeding under 28 U.S.C. § 157(b)(2); (iii) the relief requested in the Motion is in the best interests of the Reorganized Debtors, the estates and their creditors; (iv) proper and adequate notice of the Motion and the hearing thereon has been given and that no other or further notice is necessary; and, (v) upon the record herein, after due deliberation thereon, good and sufficient cause exists for the granting of the relief as set forth herein,

IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:

1. The Motion is Granted.

2. The Settlement is approved, and the terms of the Settlement shall govern the handling of that portion of the Port Authority claim relating to environmental and building conditions at and under the Leased Properties at La Guardia Airport in this Chapter 11 case.
3. Notwithstanding any provision of the Bankruptcy Procedure or the Local Rules of this Court to the contrary, this Order shall take effect immediately upon entry of this Order.
4. This Court shall retain jurisdiction over all matters arising from or related to the implementation of this Order

[1] Unless otherwise defined herein, all capitalized terms shall have the meaning ascribed to them in the Motion.
[1a] The Reorganized Debtors are the following entities: US Airways Group, Inc., US Airways, Inc., Allegheny Airlines, Inc., PSA Airlines, Inc., Piedmont Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc. and Material Services Company, Inc. For purposes herein, Group and its domestic subsidiaries will be referred to as the “Debtors” when reference is made to a period of time prior to the Effective Date.