Pinnacle Judge Approves $74M DIP Loan From Delta

Law360, New York (May 16, 2012, 8:05 PM EDT) -- A New York bankruptcy judge on Wednesday approved Pinnacle Airlines Corp.'s $74.3 million debtor-in-possession package from Delta Air Lines Inc. over objections from equity holders, which had argued that the loan is a shotgun deal that comes with too many strings attached.

Following a hearing during which the parties repeatedly called the proposed DIP package “very unusual” for its coming from another airline, U.S. Bankruptcy Judge Robert E. Gerber said the loan is too necessary for the bankrupt regional airline's survival to turn it down, overruling...
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