Delta to buy Pinnacle
01-03-2013, 09:43 AM
#1
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Delta to buy Pinnacle
Not even in the least a surprise, but it's official- pending bankruptcy court and creditors committee approval.
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Pinnacle takes steps to emerge from bankruptcy protection
January 3, 2013
Pinnacle Airlines filed motions with the bankruptcy court Thursday seeking approval of several components of a new business plan that the airline says will allow it to emerge from bankruptcy with a competitive cost structure and as a viable airline over the long term.
As part of its new business plan, Pinnacle seeks to amend its existing debtor-in-possession financing agreement with Delta. As part of the new agreement, Delta will provide $52 million of additional liquidity to allow Pinnacle to continue its operations and to emerge from bankruptcy as a successful Delta Connection carrier.
Pinnacle also filed a restructuring support agreement setting forth the basic terms for Pinnacle’s plan of reorganization. This reorganization plan, if approved, will allow Delta to convert its financial support into ownership of Pinnacle after it emerges from bankruptcy.
Pinnacle must file a plan of reorganization acceptable to Delta and the Creditors’ Committee by Feb. 15. The plan also is subject to ratification by Pinnacle’s pilots of a revised collective bargaining agreement.
“This enhanced debtor-in-possession financing agreement is yet another step in enabling Pinnacle to achieve long-term stability and profitability, which is in the best interests of Delta’s network and customers,” said Don Bornhorst, s.v.p.–Delta Connection. “Converting Delta’s financing of Pinnacle to equity makes the most sense for both Pinnacle and Delta given Delta’s position as Pinnacle’s only customer and the fact that Delta has provided substantially all of the financing that is enabling Pinnacle to restructure its business.”
In a memo to Pinnacle employees, Pinnacle CEO John Spanjers outlined several components of the airline’s new business plan, including removal of 140 less efficient 50-seat regional jets from Pinnacle’s fleet and adding 40 fuel-efficient, two-class regional jets to be flown under the Delta Connection umbrella. All of the components of the comprehensive agreement are subject to bankruptcy court approval.
__________________________________________________ _____________
Pinnacle takes steps to emerge from bankruptcy protection
January 3, 2013
Pinnacle Airlines filed motions with the bankruptcy court Thursday seeking approval of several components of a new business plan that the airline says will allow it to emerge from bankruptcy with a competitive cost structure and as a viable airline over the long term.
As part of its new business plan, Pinnacle seeks to amend its existing debtor-in-possession financing agreement with Delta. As part of the new agreement, Delta will provide $52 million of additional liquidity to allow Pinnacle to continue its operations and to emerge from bankruptcy as a successful Delta Connection carrier.
Pinnacle also filed a restructuring support agreement setting forth the basic terms for Pinnacle’s plan of reorganization. This reorganization plan, if approved, will allow Delta to convert its financial support into ownership of Pinnacle after it emerges from bankruptcy.
Pinnacle must file a plan of reorganization acceptable to Delta and the Creditors’ Committee by Feb. 15. The plan also is subject to ratification by Pinnacle’s pilots of a revised collective bargaining agreement.
“This enhanced debtor-in-possession financing agreement is yet another step in enabling Pinnacle to achieve long-term stability and profitability, which is in the best interests of Delta’s network and customers,” said Don Bornhorst, s.v.p.–Delta Connection. “Converting Delta’s financing of Pinnacle to equity makes the most sense for both Pinnacle and Delta given Delta’s position as Pinnacle’s only customer and the fact that Delta has provided substantially all of the financing that is enabling Pinnacle to restructure its business.”
In a memo to Pinnacle employees, Pinnacle CEO John Spanjers outlined several components of the airline’s new business plan, including removal of 140 less efficient 50-seat regional jets from Pinnacle’s fleet and adding 40 fuel-efficient, two-class regional jets to be flown under the Delta Connection umbrella. All of the components of the comprehensive agreement are subject to bankruptcy court approval.
01-03-2013, 10:22 AM
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01-03-2013, 11:02 AM
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There you have it, Pinnacle is the next Comair (Delta Owned regional) 
"We would be a separate entity, but a subsidiary of Delta,"
Under bankruptcy agreement, Pinnacle to operate as Delta subsidiary - Memphis Business Journal
"We would be a separate entity, but a subsidiary of Delta,"
Under bankruptcy agreement, Pinnacle to operate as Delta subsidiary - Memphis Business Journal
01-03-2013, 11:05 AM
#10
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Joined APC: May 2011
Posts: 5
There you have it, Pinnacle is the next Comair (Delta Owned regional)
"We would be a separate entity, but a subsidiary of Delta,"
Under bankruptcy agreement, Pinnacle to operate as Delta subsidiary - Memphis Business Journal
"We would be a separate entity, but a subsidiary of Delta,"
Under bankruptcy agreement, Pinnacle to operate as Delta subsidiary - Memphis Business Journal
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