A US bankruptcy court approved Delta Air Lines’ (DL) $74.3 million in debtor-in-possession (DIP) financing for Pinnacle Airlines Corp., a significant provider of regional service for DL. The Memphis-based parent of Pinnacle Airlines, Colgan Air and Mesaba Aviation is in the midst of a Chapter 11 restructuring.
President and CEO Sean Menke said, “Combined with cash from our ongoing operations, this funding will be available to help ensure that Pinnacle has sufficient liquidity to meet its operational and restructuring needs. This is an important step in our ongoing efforts to develop a viable business plan.”
According to a Bloomberg report on the court proceedings, judge Robert Gerber became convinced the DIP loan was necessary to prevent Pinnacle from running out of cash by June 1. The regional operator conceded that DL is the only company willing to loan it money at this time.
Article Source : ATW Daily News
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