Delta, Pinnacle & Bankruptcy

Описание: To learn more about bankruptcy and to find out if it is right for you, contact the law office of Jayson Lutzky. Mr. Lutzky offers free in person consultations. Call his office at 718-329-9500 or visit www.MyNewYorkCityLawyer.com.

Transcript:
Delta to acquire small airline, Pinnacle, as Pinnacle files for bankruptcy protection
In April 2012, Pinnacle Airlines filed for Chapter 11 bankruptcy. This is theytype of bankruptcy that businesses choose to restructure, or reorganize, while their business operation is under protection from creditors. Two main reasons Pinnacle filed for bankruptcy was its debt and high fuel prices.
The airline will now emerge from Chapter 11 protection as part of Delta, flying 81 planes on shot, regional routes. Pinnacle will not fly routes for United and US Airways anymore, according to a January 16th, 2013 Thomson Reuters News and Insight article.
The airline will receive $30 million of liquidity as well as money for pilots in order to continue its operations. In order to implement this plan to save the airline, it must file papers in court by February 15, 2013. Other airlines have faced financial difficulties. For example, AMR, the parent company of American Airlines is currently under bankruptcy protection and has been so for over one year. Thank you.