Court Approves Plan To Exit Bankruptcy By Mid-February

Continuing on the path first blazed last month by United Airlines, Hawaii's Aloha Airlines has been granted permission to exit bankruptcy. Thursday, US Bankruptcy Judge Robert Faris approved modifications to a Plan of Reorganization that clears the way for Aloha Airlines to exit bankruptcy protection by mid-February.

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

As Aero-News reported last year, Aloha will emerge from bankruptcy under new ownership. The Yucaipa Companies assumed financial responsibility for Aloha from the airline's former owners in September 2005... although the Ching and Ing families, longtime owners of Aloha, will continue to have ownership interest and have Board representation. In addition, Banmiller will continue to serve as President, Chief Executive Officer and Board member of the reorganized Aloha Airlines.

"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," Banmiller added.

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

"Thanks to the cooperative efforts of our 3,500 employees, our business partners, investors and advisers, the new Aloha Airlines will emerge with a balance sheet that's stronger than ever and exceedingly well positioned to compete in today's market. With the continued support of our loyal customers, Aloha Airlines is poised to become a leader in this part of the world."

FMI: www.alohaairlines.com