TWA EXPECTS QUICK EXIT FROM CHAPTER 11

TWA EXPECTS QUICK EXIT FROM CHAPTER 11

Trans World Airlines said its prepackaged bankruptcy has gone well, which should allow it to emerge from Chapter 11 in less than two weeks.

The carrier, which filed for protection June 30, said it sees no reason for delay in its exit from Chapter 11. After bankruptcy, the company's $1.8 billion debt will fall by $500 million.The airline is paying off some of its debt with stock and with discounts on airline flights.

On Wednesday, TWA announced a deal in which noteholders can convert their discount certificates into cash.

In addition to stock, people or institutions holding TWA's 8 percent notes due in 2000 get vouchers worth $50 toward the cost of air fare.

Each voucher can be used to pay for up to half of a ticket's cost.

A private investment fund managed by New York-based M.D. Sass Investor Services has agreed to pay $26 cash for each voucher, TWA said. The offer expires Oct. 5.

TWA said about 2,000 people or institutions will receive $30 million worth of vouchers.

Meanwhile, the airline also has announced that the number of passengers it carried during the first seven months of the year totaled 12 million, up 2.5 percent from the same period a year earlier.

TWA said the increase was "in part due to the more efficient deployment of TWA aircraft to the St. Louis hub."