Midway Airlines liquidation expected to go on until July 2006 - report

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Although about USD13m of the assets of Midway Airlines have been sold most numerous of the remaining USD140m claims from creditors will not be paid.

Midway Airlines was reportedly liquidated couple years ago after orders from the US Bankruptcy arbiter A. Thomas Small. At the time (October 2003) the airline had been struggling for 26 month to reorganise. Since the liquidation order the airline's eight regional jet leases and parts have been divested for about USD12.9m and combined with foundations and fees that were restoreed According to a court report from 25 July USD20.59m has been raised to repay creditors.

It has been estimated that there are outstanding administrative claims in exces of USD25m and also an estimated USD115m owed to more than 1000 other creditors, The Associated Pres reported. Joseph Callaway, an attorney appointed to deal with the remaining assets, has said that he does not look for to settle the case until July nearest year.

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