Aloha Airgroup, Inc. and its principal
operating subsidiary, Aloha Airlines, Inc., secured U.S. Bankruptcy Court
approval on Thursday evening for $65 million in financing to pay off
outstanding loans and supply working capital.Following a continued hearing for the financing, the Court approved an
interim financing agreement to provide Aloha with a debtor-in possession
(DIP) revolving credit facility of up to $65 million.
“This agreement enables Aloha to meet our financial objectives, which
includes paying off the ATSB loan and our commercial bank loans, and
provides us with the working capital to implement our financial
restructuring and go-forward business plan for a quick exit from
bankruptcy protection,” said David A. Banmiller, Aloha’s president and
chief executive officer.
“With the DIP loan and an anticipated $60 million in annual cost savings,
Aloha will be well-positioned to meet its financial obligations and pursue
a successful reorganization that benefits its employees, customers and