America West to Seek Stock Switch

America West Airlines says its bankruptcy reorganization plan will propose replacing existing stock held by employees and other shareholders with new stock issued to creditors and new investors.

Phoenix-based America West sought Chapter 11 refuge from its creditors in June. The reorganization plan, which will detail how America West plans to repay its debts, is due June 19.

In a statement issued late Friday, America West said the plan provides for “a substantial investment by new equity investors in return for stock in the reorganized company” and distribution of stock or cash to the company’s creditors.

He said America West expects to give unsecured creditors new stock for the $400 million they are owed “but not 100 cents on the dollar.”