US Airways Group selected the Alabama Retirement Systems' $240 million investment offer for a 37.5% stake in the restructured airline, pending its emergence from Chapter 11 bankruptcy protection. A federal bankruptcy court in Alexandria, Va., approved the deal. The airline also accepted the $26 billion pension fund's commitment for a fully underwritten $400 million debtor-in-possession financing arrangement. Additionally, US Airways and the Montgomery-based system agreed to restructure $340 million in various debt obligations held by the plan. Terms of the debt restructuring were not disclosed.
The agreement comes a week after Alabama topped a $200 million bid from private equity firm Texas Pacific Group. US Airways said in a statement that it will still consider other bids while the airline is in bankruptcy.