BANKRUPTCY

Creditors Agree to Drop Lawsuit Against TWA: The agreement, announced by the airline, boosts TWA’s bid to reorganize and staves off a legal effort by Shawmut Bank of Boston, trustee for the creditors, to repossess collateral on $250 million in debt TWA defaulted on in January. The collateral is 189 landing and takeoff rights at airports in New York, Chicago and Washington, as well as spare parts at 16 airports. Terms of the agreement, which was confirmed by a Shawmut lawyer, weren’t disclosed, but it removes a major obstacle to TWA’s plan to reorganize. TWA last month proposed a deal with its four major creditor groups that would give them majority control of the airline and temporarily place the carrier in bankruptcy proceedings early next year.