Aloha Airlines plan changes approved; expects to exit bankruptcy by mid-February

By Caroline Salls

Pittsburgh, Feb. 3 - Aloha Airlines will exit Chapter 11 bankruptcy by mid-February after the U.S. Bankruptcy Court for the District of Hawaii approved modifications to its plan of reorganization, according to a company news release.

"We've cleared all the hurdles and we are hopeful we will have our new funding in mid-February," president and chief executive officer David A. Banmiller said in the release.

"We're excited that our lead investor The Yucaipa Cos. will be coming aboard very soon and that we also will have participation by local investors to carry the Aloha Airlines tradition forward."

Under the modified plan of reorganization, Aloha will emerge with $63 million in equity and very little debt, Banmiller said in the release.

Aloha Airgroup, a Hawaii corporation, is the parent of Aloha Airlines. Aloha Airlines operates commercial air transportation services and is based in Hawaii.

Aloha Airgroup filed for Chapter 11 Dec. 30, 2004. Its Chapter 11 case number is 04-03063.

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