Pinnacle Air Can Take Delta’s $74 Million Loan, Judge Says
This article is for subscribers only.
Pinnacle Airlines Corp., the bankrupt airline won approval to borrow as much as $74.3 million from Delta Air Lines Inc. after a judge overruled objections from a group of shareholders.
U.S. Bankruptcy Judge Robert Gerber in Manhattan court today approved the company’s request for the so-called debtor-in-possession loan that will fund operations in bankruptcy. The loan requires Pinnacle to take on money-losing contracts to provide services to Delta and sets a timeline for it to renegotiate labor terms with its unions and file an exit plan.