Aloha $10.5 million air cargo business sale approved

By Caroline Salls

Pittsburgh, May 14 - Aloha Airlines, Inc.'s Chapter 7 trustee obtained court approval to sell the company's air cargo business to Saltchuk Resources, Inc. nominee Aeko Kula, Inc. for $10.5 million, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Hawaii.

As previously reported, the bid procedures for the air cargo business sale were approved on April 8, before the company's case was converted to Chapter 7 bankruptcy.

However, the auction for the air cargo business, at which Saltchuk was the stalking horse bidder, was not successful.

Because of the auction failure and given the fact that Aloha did not have enough liquidity to operate its businesses, the company converted its bankruptcy case on April 28.

After trustee Dane S. Field was granted court approval to operate the air cargo business, Saltchuk and Aloha lender GMAC Commercial Finance, LLC submitted a letter of intent to purchase the business.

Field said the letter of intent required GMAC to fund the operation of the air cargo business through May 14. The sale order allows Field to continue to operate the business through May 15 to complete the sale, which was expected to close on May 14.

Aloha, a Honolulu-based airline, filed for bankruptcy on March 20. Its case number is 08-00337.

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