RESOLUTION NO. RS2009-619

A resolution authorizing the Department of Law to settle The Metropolitan Government of Nashville and Davidson County’s claims in the U.S. Airways, Inc. and PSA Airlines, Inc. Chapter 11 bankruptcy cases for the payment of $162,224 to the Metropolitan Government.

WHEREAS, U.S. Airways, Inc. and PSA Airlines, Inc. filed for Chapter 11 bankruptcy on September 12, 2004 in the United States Bankruptcy Court, Eastern District of Virginia, Docket No. 04-13819; and,

WHEREAS, the Metropolitan Government filed proofs of claims and administrative claims for unpaid utility personalty property taxes for tax years 2002 and 2004 respectively; and,

WHEREAS, U.S. Airways, Inc. and PSA Airlines, Inc. object to the assessment of the 2002 and 2004 taxes, the amount of the Metropolitan Government’s prepetition and administrative claims, and the timeliness of the Metropolitan Government’s claims; and,

WHEREAS, U.S. Airways, Inc. and PSA Airlines, Inc. have agreed to settle the Metropolitan Government’s tax claims by paying the Metropolitan Government a lump sum in the amount of $162,224; and,

WHEREAS, after a thorough investigation, the Metropolitan Department of Law believes that the settlement is fair and reasonable and in the best interest of the Metropolitan Government, and recommends that the settlement be accepted.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. That the Metropolitan Department of Law is authorized to settle the Metropolitan Government’s claims in the U.S. Airways, Inc. and PSA Airlines, Inc. Chapter 11 bankruptcy cases for payment by U.S. Airways, Inc. and PSA Airlines, Inc. to The Metropolitan Government of Nashville and Davidson County the sum of $162,224, and to deposit said funds into the appropriate fund and account as determined by the Director of Finance.

Section 2. That this resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Jim Forkum

LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee
Introduced:	January 20, 2009
Adopted:	January 20, 2009
Approved:	January 22, 2009
By: