Aloha Closes Cargo Unit, Converts To Chapter 7

Law360, New York (April 29, 2008, 12:00 AM EDT) -- Aloha Airlines Inc. has shut down its cargo division and converted its Chapter 11 reorganization to a Chapter 7 liquidation after two suitors interested in purchasing the cargo side of Aloha's business pulled out and GMAC Commercial Finance wouldn't provide further financing.

Aloha filed a notice of conversion with the U.S. Bankruptcy Court for the District of Hawaii on Monday, saying that Aloha Airlines Inc., Aloha Airgroup Inc. and Airgroup Acquisition Corp. were converting their Chapter 11 cases to Chapter 7 cases.

Tuesday, David Farmer, an...
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