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Published on 6/30/2006 in the Prospect News Distressed Debt Daily.

Mesaba granted court OK of Northwest aircraft use and return agreement

By Caroline Salls

Pittsburgh, June 30 - Mesaba Aviation Inc. obtained court approval of an aircraft use and return conditions agreement with Northwest Airlines Corp., according to a Thursday filing with the U.S. Bankruptcy Court for the District of Minnesota.

The use and return agreement amends previous lease and sublease agreements on British Aerospace AVRO Model 146-RJ85A and 10 British Aerospace AVRO Model 146-RJ85A AVRO 146-RJ85A aircraft leased by Mesaba from Northwest.

The specific terms of the agreement were filed under seal, but the motion said the amended agreement will provide for an earlier lease and sublease termination date and will modify and resolve any disputes concerning the required aircraft return conditions specified in each sublease agreement.

Mesaba, an Eagan, Minn.-based Northwest Airlines affiliate, filed for bankruptcy on Oct. 13, 2005. Its Chapter 11 case number is 05-39258.


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