Western Pacific Airlines has won bankruptcy court approval for its own re-organisation plan, backed by the Smith Management Company (SMC), after the withdrawal of a rival bid from Frontier Airlines.
Frontier helped to precipitate WestPac's descent into Chapter 11 bankruptcy protection in October when it withdrew from a merger. It later re-appeared as a potential rescuer, outlining a bid with investment firm Wexford Management.
The bid was withdrawn when creditors backed the WestPac management's plan together with SMC, an investment house which already holds a controlling stake in Hawaiian Airlines. The court has approved an initial $10 million loan from SMC which will be used to keep the airline aloft, and pay overdue leases, avoiding groundings within the 18-strong Boeing 737-300 fleet. Another $10-20 million is due starting 20 December.
Source: Flight International
