» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 127 | NO. 64 | Monday, April 02, 2012

Pinnacle Airlines Files Ch. 11 Bankruptcy

By Andy Meek

Print | Front Page | Email this story | Email reporter | Comments ()

Pinnacle Airlines CEO Sean Menke told employees via a letter in January that the beleaguered Memphis-based regional air career might have to seek Chapter 11 bankruptcy protection.

On Sunday, April 1, the company did just that, filing a bankruptcy petition in the Southern District of New York, which handles many of the country's biggest bankruptcy reorganization cases.

Pinnacle announced Sunday the bankruptcy filing is part of a turnaround process for the company that includes Pinnacle having received a commitment from Delta Air Lines Inc. for $74.3 million in debtor-in-possession financing.

Pinnacle will use $44.3 million of that amount to pay back a secured promissory note held by Delta. The rest of the money will be used to fund Pinnacle's ongoing operations.

In a statement released Sunday, Menke said Pinnacle intends "to use the Chapter 11 process to reset our financial and operational structure in order to position Pinnacle for viability over the long term."

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 87 87 14,804
MORTGAGES 80 80 19,410
FORECLOSURE NOTICES 22 22 3,817
BUILDING PERMITS 142 142 35,472
BANKRUPTCIES 62 62 14,096
BUSINESS LICENSES 62 62 5,053
UTILITY CONNECTIONS 99 99 21,532
MARRIAGE LICENSES 37 37 4,594

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.