SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
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): July 7, 1997
WORLD AIRWAYS, INC.
(Exact name of registrant as specified in charter)
Delaware 0-26582 94-1358276
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
13873 Park Center Road, Suite 490, Herndon, Virginia 20171
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(703) 834-9200
<PAGE.
ITEM 5. ACQUISITION OR DISPOSITION OF ASSETS
World Airways, Inc. (the "Company") has previously
disclosed that Philippine Airlines is experiencing financial
difficulties, and has been making monthly lease payments to the
Company on an installment basis according to a payment plan which
the Company and Philippine Airlines would agree to at the
beginning of each month. The Company and Philippine Airlines
have not agreed on a payment plan for July. Philippine Airlines
has failed to date to pay its July monthly lease rent for four
MD-11 passenger aircraft. The Company is in discussions with
Philippine Airlines about how Philippine Airlines will meet all
of its contractual obligations to the Company. The Company is
also in discussions with Philippine Airlines and another air
carrier to relieve Philippine Airlines of a portion of its
remaining lease obligations for up to two of the four aircraft.
The Company can provide no assurances, however, that these
negotiations will be successful. The failure of the
negotiations, and/or the failure of Philippine Airlines to pay
all outstanding amounts owed to the Company, if not offset by
other business, would have a material adverse effect on the
financial condition, cash flows and results of operation of the
Company. The Company has also received a written notice of
default from Philippine Airlines alleging certain performance
deficiencies by the Company relating to flight delays. The
Company believes that the issuance of the notice of default by
Philippine Airlines relates to the financial difficulties
Philippine Airlines is experiencing, rather than to any
performance shortfall by the Company. The Company believes
that it is not in default under the contract, and has provided
Philippine Airlines with substantial statistical data fully
supporting the Company's position.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(a) Financial Statements
Not applicable.
(b) Pro Forma Financial Information
Not applicable.
(c) Exhibits
Not applicable.
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SIGNATURE
Pursuant to the requirements of the Securities Act of 1934,
the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
WORLD AIRWAYS, INC.
/s/ Mark S. Lynch
Name: Mark S. Lynch
Title: Chief Financial Officer
Date: July 7, 1997
