Michael F. Easley, Governor
Buck Lattimore, Chairman

Bernadine S. Ballance, Commissioner
Thomas J. Bolch, Commissioner
Laura K. Mavretic, Commissioner
Renée C. Riggsbee, Commissioner
Christopher Scott, Commissioner
Dianne C. Sellers, Commissioner

North Carolina
Industrial Commission




TO:         All Interested Parties

FROM:   Chairman Buck Lattimore

DATE:    September 9, 2002

RE:         US Airways Group - Bankruptcy

               US Airways Group, including its subsidiaries, have filed voluntary Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Eastern District of Virginia, Alexandria Division, File No.: 02-83894-SSM.

               We are advised that US Airways Group has received permission of the Bankruptcy Court to continue claim processing in the normal course. The automatic stay provisions of the Federal Bankruptcy Code are not an impediment to workers’ compensation claims. The Industrial Commission is proceeding with administrative proceedings and hearings at every level of the Commission.

               US Airways Group does report that settlements are more involved as signatures of various parties are now required for the approval process. Counsel for US Airways Group is requesting that claimants in cases pending mediation agree to a postponement of all mediations. Counsel believes that the expanded approval process now required may return to a more normal procedure in the immediate future. If claimants do not agree to postponement of mediations, US Airways can attend mediation with the express agreement that any settlement terms negotiated would be subject to post-mediation ratification.

               If any claimant does not receive benefits to which they are lawfully entitled or should benefits awarded be suspended or terminated for unexplained reasons, please notify the Industrial Commission. Questions or concerns regarding US Airways Group claims should be directed to: Stephen T. Gheen, Chief Deputy Commissioner, 919-807-2540 or gheen@ind.commerce.state.nc.us. Due to the volume of inquiries, email communication is requested if possible, though not required.

               The Industrial Commission website (www.comp.state.nc.us) will be updated as needed with additional information.

N.C. Industrial Commission ·   4340 Mail Service Center ·   Raleigh, NC 27699-4340
Phone:  (919) 807-2500 ·   Fax:  (919) 715-0282
NCIC Home Page:  http://www.ic.nc.gov/