Pinnacle Airlines Debtor-In-Possession Financing Approved
16-May-2012 Pinnacle Airlines Corp. (OTCMarkets.com: PNCLQ) today announced that it has received final approval from the United States Bankruptcy Court for the Southern District of New York for $74.3 million in debtor-in-possession (DIP) financing. The funding is being provided by Delta Air Lines, Inc.
"We are pleased that the court has granted Pinnacle final approval for DIP financing with the support of the unsecured creditors' committee," said Sean Menke, president and CEO of Pinnacle. "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, while continuing to provide passengers with safe, reliable and timely service."
As previously announced, $44.3 million of the DIP financing will be used by Pinnacle to repay a secured promissory note held by Delta. The remaining $30 million will be available to fund operations during the restructuring process.
Davis Polk & Wardwell LLP and Akin Gump Strauss Hauer & Feld LLP are serving as the company's legal advisors in the restructuring. Barclays Capital and Seabury Group LLC are serving as financial advisors.