Southern Air Gets Thumbs-Up For $12.5M DIP Loan

Law360, Wilmington (October 1, 2012, 7:37 PM EDT) -- Private equity-owned cargo carrier Southern Air Inc. on Monday won court approval to borrow $12.5 million to finance operations during its bankruptcy and successfully blocked a bid from Wells Fargo Bank NA to ground and repossess two of its planes over missed lease payments.

At a hearing in Delaware, U.S. Bankruptcy Judge Peter J. Walsh signed off on the first half of a $25 million debtor-in-possession loan provided by some of SAI’s existing secured lenders, led by Canadian Imperial Bank of Commerce as agent.

Norwalk, Conn.-based...
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