Sale Of Aloha's Mesa Claim Runs Into Trouble

Law360, New York (June 19, 2008, 12:00 AM EDT) -- Aloha Airlines Inc.'s Chapter 7 trustee is having trouble obtaining approval for his proposal to sell the bankrupt airline's potential recovery in an antitrust lawsuit against Mesa Air Group Inc. to Yucaipa Corporate Initiative Fund I, which the debtors owe $116.7 million.

At a hearing Tuesday on Trustee Dane S. Field's motion to approve the $10 million sale, Judge Lloyd King of the U.S. Bankruptcy Court for the District of Hawaii said the transaction would be unfair because other potential buyers were excluded from bidding, the...
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