SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 28, 1999
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MIDWAY AIRLINES CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
000-23447 36-3915637
(Commission File Number) (IRS Employer Identification No.)
2801 Slater Road, Suite 200
Morrisville, North Carolina 27560
(Address of principal executive offices) (Zip Code)
(919) 595-6000
(Registrant's telephone number, including area code)
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Item 5. Other Events.
On December 28, 1999 the United States District Court Southern
District of New York issued a stipulation and Order of Dismissal in a case
entitled First Security Bank, National Association against Midway Airlines, Inc.
The complaint in this case was described in the Company's Form 8-K Current
Report dated June 14, 1999. The case has been dismissed with prejudice pursuant
to a settlement reached between the Company and an aircraft lessor. In
connection with the settlement of this case, the Company issued the press
release filed herewith as Exhibit 99.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
99 Press Release, dated January 5, 2000
2
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MIDWAY AIRLINES CORPORATION
By: /s/ Jonathan S. Waller
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Dated: January 6, 2000 Jonathan S. Waller
Senior Vice President
Exhibit 99
FOR IMMEDIATE RELEASE Media Contact:
Robert R. Ferguson III
President & CEO
(919) 595-6003
MIDWAY AIRLINES SETTLES LITIGATION WITH AIRCRAFT LESSOR
RALEIGH-DURHAM, N.C. - January 5, 2000 - Midway Airlines Corporation
(NASDAQ: MDWY) announced today that it has settled a pending lawsuit with the
lessor of four Fokker F100 aircraft formerly operated by the Company.
Under the terms of the settlement:
a) Midway has paid $2.0 million to the lessor, and will receive
approximately $1.3 million from the lessor, to resolve various
disputes between the companies;
b) Midway will make a prepayment of $1.3 million toward outstanding debt
owed to the lessor; and
c) Midway has obtained an option to terminate four other aircraft leases
prior to their scheduled expiration.
If Midway exercises the option to terminate the four other aircraft
leases, the leases on those four F100 aircraft will terminate during the first
half of 2001 rather than during the winter of 2003/04 as originally scheduled.
If Midway elects to exercise the option, the Company will pay to the lessor
approximately $2.125 million upon the early termination of each lease. Midway
may exercise the option at any time prior to March 1, 2000.
In connection with the settlement agreement, Midway will record a
pre-tax charge amounting to approximately $700 thousand during the fourth
quarter of 1999. Further, if Midway should elect to terminate the four other
leases pursuant to the option, an additional pre-tax charge of approximately
$8.5 million would be recorded.
