Jan 16 Pinnacle Airlines Corp won
bankruptcy court approval on Wednesday for agreements that it
said pave the way for the regional carrier to emerge from
Chapter 11 as a unit of Delta Air Lines.
U.S. Bankruptcy Court Judge Robert Gerber signed an order
that allows Pinnacle to form a restructuring accord with Delta.
The carrier's reorganization plan, which will allow Delta to
acquire equity in Pinnacle after Pinnacle emerges from
bankruptcy, must be filed by Feb. 15.
Pinnacle's new business plan calls for it to operate 81
two-class regional jets for Atlanta-based Delta.
The Memphis, Tennessee, regional carrier filed for Chapter
11 in April 2012, pressured by debt and high fuel prices. At the
time of the filing, Pinnacle said it would rework contracts with
Delta and end the flying it had done for United Airlines
and US Airways Group.
The judge also approved an amendment to Pinnacle's
debtor-in-possession credit facility that provides $30 million
of additional liquidity for continued operation and an
additional $22 million to pay pilots. A new labor pact with
Pinnacle's pilots was also approved.
The case is Pinnacle Airlines Corp, Case No. 12-11343, U.S.
Bankruptcy Court, Southern District of New York.
Without the agreements, Pinnacle would face "significant
risk" of having to cease operations by February, the carrier
said in its motion.