Mesa Air Reaches $27.5M Deal With Creditor AAR

Law360, New York (January 25, 2011, 2:38 PM EST) -- A bankruptcy judge has confirmed a $27.5 million settlement in a contract dispute between Mesa Air Group Inc. and aviation support company AAR Corp., on the heels of the bankrupt airline’s Chapter 11 plan winning approval.

Judge Martin Glenn approved the agreement in an order Monday in the U.S. Bankruptcy Court for the Southern District of New York, requiring that the airline pay $1.35 million in cash and stipulating a $26 million unsecured claim against Mesa.

Under the agreement, Mesa Air will pay $1.35 million in...
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