Northwest Secures Key Approval For Mesaba Sale

Law360, New York (February 27, 2007, 12:00 AM EST) -- A federal bankruptcy judge has greenlighted Northwest Airlines Corp.'s proposal to purchase Mesaba Aviation Inc., moving the regional carrier one step closer to exiting bankruptcy protection.

On Tuesday, U.S. Bankruptcy Judge Allan Gropper, who is presiding over Northwest’s bankruptcy, approved the deal which would grant Mesaba a $145 million unsecured claim in the larger airline’s bankruptcy.

Mesaba, a feeder carrier for Northwest that provides regional service to smaller airports, entered bankruptcy shortly after Northwest ducked into Chapter 11 in September 2005.

Under the all-stock sale, Mesaba...
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