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Court Order
Restricts Trading Of Equity And Debt Claims Against Pinnacle Airlines By Daniel Baxter |
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April 8, 2012 - Pinnacle Airlines announced that the
United States Bankruptcy Court for the Southern District
of New York has entered an order that imposes
substantial restrictions on trading in equity interests
in and debt claims against Pinnacle Airlines Corp. and
affiliates.
On
April 1, 2012 Pinnacle Airlines announced that the
Company and its subsidiaries had filed voluntary
petitions for relief under Chapter 11 of the United
States Bankruptcy Code in the U.S. Bankruptcy Court for
the Southern District of New York (the "Court").
Pinnacle intends to use the Chapter 11 process to
continue implementing a comprehensive turnaround plan
aimed at addressing its operational and financial
challenges in a rapidly evolving regional airline
industry.
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During
this process, the company will remain focused on providing
passengers with safe, reliable and timely service in
collaboration with its network partners, Delta Connection,
United Express and US Airways Express.
These
initiatives include restructuring its key operating agreements
with Delta Air Lines, winding down its operations with United
Airlines, completing the wind-down of its Essential Air Service
(EAS) flying with US Airways, achieving cost savings from its
workforce, identifying additional opportunities across the
organization to reduce costs, and ensuring that it has the
appropriate fleet, staffing levels and network to operate
profitably on an ongoing basis. Sean Menke, President and CEO of Pinnacle, said, "We intend to use the Chapter 11 process to reset our financial and operational structure in order to position Pinnacle for viability over the long term. Quite simply, our current business model is not sustainable, as increasing operating expenses, liquidity constraints, business integration delays and difficulties associated with combining our operations have hindered our ability to maximize our growth potential.
?Following
a lengthy review process, and with the assistance of independent
financial, industry and legal advisors, our Board of Directors
determined that a court-supervised restructuring is the only
feasible course of action to implement our turnaround plan." |