UPDATE 1-MBIA says buys US Airways securities for $1.5 bln

ARMONK, N.Y., March 10 (Reuters) - MBIA Insurance Corp. said on Monday it is paying about $1.5 billion for U.S. Airways Group Inc. certificates, a move that it said will give it more voting influence as the No. 7 airline attempts to emerge from bankruptcy protection this month. 

The unit of Armonk, New York-based bond insurer MBIA Inc. (MBI) has arranged for the immediate sale to a third party of the enhanced equipment trust certificates, which are backed by aircraft, but will retain voting rights, spokesman Michael Ballinger said. The purchase will take effect on March 20. 

MBIA would not disclose how much voting power it has over Arlington, Virginia-based U.S. Airways' affairs. It said it had the right to buy the certificates 180 days after the airline filed for bankruptcy protection. U.S. Airways (UAWGQ) sought protection from creditors in August 2002. 

The airline has said it expects to emerge from Chapter 11 bankruptcy protection by March 31. A hearing on its reorganization plan is slated to begin next Tuesday. 

MBIA Insurance Corp. said it bought four Class G pass-through certificates issued by various US Airways trusts: the 8.11 percent certificates maturing Aug. 20, 2018, the 8.02 percent certificates maturing Aug. 5, 2020, the 7.89 percent certificates maturing Sept. 1, 2020 and the 7.076 percent certificates maturing Sept. 20, 2022. 

The company said it will insure these certificates and that the purchase will not change its exposure to U.S. Airways. It said it does not expect a loss related to its $536 million of exposure to EETCs backed by aircraft leased to the airline. 

MBIA shares have fallen on concern the company might lose money on derivatives it guarantees, mainly collateralized debt obligations. The company's fourth quarter profit fell 22 percent from a year ago in part because of a $70 million drop in the market value of CDOs on its books. 

MBIA shares traded Monday afternoon on the New York Stock Exchange at $35.68, down $1.51, or 4.1 percent. They began the year at $43.86. 

U.S. Airways shares traded in over-the-counter trading at 13.3 cents, down 2.3 cents. REUTERS