Mesaba Airlines expected to exit bankruptcy during the last week of April, following the approval of its reorganization plan by U.S. Bankruptcy Judge Gregory Kishel. The Minneapolis-based Northwest Airlines affiliate filed for Chapter 11 bankruptcy in October 2005, a month after the major airline itself filed for Chapter 11 and defaulted on its service contract payments to Mesaba. The regional airline’s reorganization plan details cost-cutting measures worth $68 million a year and includes its sale to Northwest for a $145 million bankruptcy claim, which it has since sold to Goldman Sachs for $125 million. According to the company, it continues to move quickly through FAA certification and training processes in preparation for the summer launch of Bombardier CRJ900 service for Northwest Airlines.
Mesaba Reorganization Approved
- April 30, 2007, 10:23 AM