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Aloha Airlines files for Chapter 11 bankruptcy
- Thread starter flyNhawaiian767
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RJP
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RJP
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English said:
Wow, I'd hate to hear the long version. If it makes you feel any better, a couple of pilots called pay at WP to find out why they got shorted (again) and were promptly told that they'd end up with a letter in their file if they didn't go through ops and called pay directly in the future.
One company. Two names. Same **CENSORED****CENSORED****CENSORED****CENSORED**.
Hugh Jorgan
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Uhhh, I thought he was flight ops. You are at the point I have been in the past with companies where nobody would help. It's time to be such a nuisance that they pay you so that you will just leave them alone. Call PM, call, Pua, call every stinking person in Flt Ops. Everyday. Everyday at 8am. Then call them at 4PM. They'll get sick of it. Ask every one of them what they would do and how they would feel if they were in your shoes.English said:
Call the F/O rep. Call the MEC. Call everyone. Write a letter and make up a a letterhead that says something like, Goldschwartz, Sheisterman,and Fitch. Make up some text threatening legal action. Heck, in the end, you may not get squat since they are in CH 11, but I bet when PC gets back, he'll help.
When this is over, she'll still have bad breath.
Actually, before you do all that, talk sweetly to Pua. She helped me in a situation not unlike yours.
English
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Thanks Hugh. I'll try to be more of a pest. I figured my options were to 1) be more patient (not working) or 2) just escalate the situation and go to the state labor department and file a complaint. I like your suggestion as I'd rather handle it directly. I can just envision Lydia screwing up my PRIA stuff to get even if I get her in trouble.
I'll try Pua. That was originally where I started but she was off for a couple weeks going to Jill's wedding or something.
If this doesn't work though, I'd like to talk to you about post 251...
I'll try Pua. That was originally where I started but she was off for a couple weeks going to Jill's wedding or something.
If this doesn't work though, I'd like to talk to you about post 251...
Hugh Jorgan
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Hugh Jorgan
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http://the.honoluluadvertiser.com/article/2005/Mar/21/bz/bz01p.html
Don't read the second to the last paragraph while drinking milk.
Don't read the second to the last paragraph while drinking milk.
RJP
Registered Eye-Poker
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- Jul 20, 2004
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Hugh Jorgan said:
Yep, the milk came right out my nose! This one will do the same.
Check the numbers in this baby.
Aloha revenue rose 10.7% during 2004
Aloha Airlines saw its revenue increase 10.7 percent last year to $454.3 million from $410.2 million in 2003, according to a recent company filing in Bankruptcy Court.
In the recent filing, Aloha also disclosed it had $9.1 million in assets and $543.7 million in liabilities at the time of its bankruptcy. Nearly $519 million of the liabilities include secured claims from aircraft lessors, who have since been brought up to date on their monthly payments.
Chief Executive and President David Banmiller earlier this year said the airline lost $24 million in 2004 - its fifth loss in the past six years - and saw fuel prices increase by $24 million over the previous year. In January, he described the airline's cash position as "a couple million dollars" before it began receiving loans and was able to postpone making aircraft lease payments under a 60-day bankruptcy exemption.
Since then, the company has resumed aircraft payments and is in the process now of seeking additional loans from outside investors. Aloha will select a winning bidder Wednesday from among interested investors.
Last edited:
RJP
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More Cheery News From AQ
Pacific Business News (Honolulu) - March 22, 2005
http://pacific.bizjournals.com/pacific/stories/2005/03/21/daily8.html
LATEST NEWS
Pacific Business News (Honolulu) - 2:43 PM HST Tuesday
Aloha finds new investors
Prabha Natarajan
Bankrupt Aloha Airlines scrambled to find new investors over the weekend after its initial prospective financier withdrew its $90 million package.
MatlinPatterson Global Opportunities Partners II LP had until last Friday to come up with $65 million as part of its $90 million offer. However, the company decided to withdraw its offer.
"MatlinPatterson advised Aloha that it was not prepared to advance its proposal at this time," said Aloha spokesman Stu Glauberman.
The airline found a replacement deal on Sunday -- a $65 million interim financing agreement from Ableco Finance LLC and Goldman Sachs Credit Partners LP, both based out of New York.
Aloha will pay a steep price for the loan but needs the cash infusion immediately to cover its loan repayments and everyday expenses including payroll.
On Monday, the airline filed an emergency motion in the U.S. Bankruptcy Court seeking approval of its interim-financing deal. A court hearing is scheduled for Thursday.
The loan will buy Aloha time to continue its financial restructuring and its go-forward business plan, Glauberman said.
The airline plans to be out of bankruptcy by this summer.
In the bankruptcy filing, Aloha, with $400 million in gross annual revenue, paints a stark image of a company with no money in the bank, mired in debt, and suffering a $1.7 million operating loss in January.
"Without the protection afforded by Chapter 11 of the Bankruptcy Code, [Aloha] will run out of cash and will not be able to operate after March 30, 2005," the company stated in a court filing.
The airline needs $10 million to meet its expenses for this month.
Earlier, the bankruptcy court approved a bidding process for Aloha that would provide the airline with either a $65 million loan or alternative financing.
In keeping with the bankruptcy court's injunction, Aloha's management met with 45 potential investors. Goldman Sachs and Ableco were two investors able to come up with a loan proposal in short order.
Ableco Finance describes itself as an "opportunistic" lender investing in leveraged buyouts, refinancing and other risky capital ventures that range between $5 million and $200 million.
Ableco is a partnership between Cerberus Capital Management LP and Gabriel Capital Group. Cerberus is also the investor that bought a 60 percent stake in Kokusai Kogyo, the parent company of Kyo-ya, which owns the four Sheraton hotels in Waikiki and one on Maui.
Ableco and Goldman Sachs will each invest $32.5 million in the airline. The money will be paid in two installments of $55 million and $10 million.
Aloha will use the funds to pay a $24 million Air Transportation Stabilization Board loan, $18 million in commercial loans from local banks, a $2 million bridge loan from MaitlinPatterson, plus the cost of securing interim financing. The rest will be used as the airline's working capital.
The second installment will be used to cover Aloha's operating costs during the term of the loan.
The terms call for Aloha to pay a $975,000 commitment fee and $975,000 closing fee, a $1.63 million success fee if the airline reorganizes, $10,000 monthly service fee and legal fees. This is in addition to a minimum interest rate of 5.5 percent plus 500 basis points.
The agreement also provides Ableco and Goldman Sachs a 30-day exclusivity period to decide whether they want to pursue additional investments in the airline.
© 2005 American City Business Journals Inc.
Pacific Business News (Honolulu) - March 22, 2005
http://pacific.bizjournals.com/pacific/stories/2005/03/21/daily8.html
LATEST NEWS
Pacific Business News (Honolulu) - 2:43 PM HST Tuesday
Aloha finds new investors
Prabha Natarajan
Bankrupt Aloha Airlines scrambled to find new investors over the weekend after its initial prospective financier withdrew its $90 million package.
MatlinPatterson Global Opportunities Partners II LP had until last Friday to come up with $65 million as part of its $90 million offer. However, the company decided to withdraw its offer.
"MatlinPatterson advised Aloha that it was not prepared to advance its proposal at this time," said Aloha spokesman Stu Glauberman.
The airline found a replacement deal on Sunday -- a $65 million interim financing agreement from Ableco Finance LLC and Goldman Sachs Credit Partners LP, both based out of New York.
Aloha will pay a steep price for the loan but needs the cash infusion immediately to cover its loan repayments and everyday expenses including payroll.
On Monday, the airline filed an emergency motion in the U.S. Bankruptcy Court seeking approval of its interim-financing deal. A court hearing is scheduled for Thursday.
The loan will buy Aloha time to continue its financial restructuring and its go-forward business plan, Glauberman said.
The airline plans to be out of bankruptcy by this summer.
In the bankruptcy filing, Aloha, with $400 million in gross annual revenue, paints a stark image of a company with no money in the bank, mired in debt, and suffering a $1.7 million operating loss in January.
"Without the protection afforded by Chapter 11 of the Bankruptcy Code, [Aloha] will run out of cash and will not be able to operate after March 30, 2005," the company stated in a court filing.
The airline needs $10 million to meet its expenses for this month.
Earlier, the bankruptcy court approved a bidding process for Aloha that would provide the airline with either a $65 million loan or alternative financing.
In keeping with the bankruptcy court's injunction, Aloha's management met with 45 potential investors. Goldman Sachs and Ableco were two investors able to come up with a loan proposal in short order.
Ableco Finance describes itself as an "opportunistic" lender investing in leveraged buyouts, refinancing and other risky capital ventures that range between $5 million and $200 million.
Ableco is a partnership between Cerberus Capital Management LP and Gabriel Capital Group. Cerberus is also the investor that bought a 60 percent stake in Kokusai Kogyo, the parent company of Kyo-ya, which owns the four Sheraton hotels in Waikiki and one on Maui.
Ableco and Goldman Sachs will each invest $32.5 million in the airline. The money will be paid in two installments of $55 million and $10 million.
Aloha will use the funds to pay a $24 million Air Transportation Stabilization Board loan, $18 million in commercial loans from local banks, a $2 million bridge loan from MaitlinPatterson, plus the cost of securing interim financing. The rest will be used as the airline's working capital.
The second installment will be used to cover Aloha's operating costs during the term of the loan.
The terms call for Aloha to pay a $975,000 commitment fee and $975,000 closing fee, a $1.63 million success fee if the airline reorganizes, $10,000 monthly service fee and legal fees. This is in addition to a minimum interest rate of 5.5 percent plus 500 basis points.
The agreement also provides Ableco and Goldman Sachs a 30-day exclusivity period to decide whether they want to pursue additional investments in the airline.
© 2005 American City Business Journals Inc.
English
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- Nov 26, 2001
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Looked like it was a close call yesterday, but Aloha finally has some interim financing.
Posted on: Friday, March 25, 2005
Aloha loan OK'd for interim
By Dan Nakaso
Advertiser Staff Writer
A U.S. Bankruptcy Court judge last night gave interim approval for a loan to Aloha Airlines worth up to $65 million after his initial concerns about the financing plan were addressed.
Aloha, which filed for bankruptcy protection on Dec. 30, had a signed agreement with a joint venture involving Goldman Sachs Credit Partners LP, a unit of Goldman, Sachs & Co., and Park Avenue-based Ableco Finance LLC, to each provide $32.5 million.
Judge Lloyd King — sitting in for Judge Robert Faris, who usually presides over Aloha's bankruptcy proceedings — initially said he had particular concerns about three terms of the loan, some of which King characterized as "very aggressive" and highly unusual for a bankruptcy case.
In an afternoon hearing, King said his concerns prevented him from approving the loan. Later in the evening, the parties involved in the case returned to King's chambers with a revised proposal that King approved on an interim basis, a spokesman for Aloha said.
The interim order runs to April 25, or until a final order is approved by the court, whichever comes first.
"This agreement enables Aloha to meet our financial objectives, which includes paying of our (federal) loan and our commercial bank loans, and provides us with the working capital to implement our financial restructuring and go-forward business plan for a quick exit from bankruptcy," said David Banmiller, Aloha's president and chief executive officer.
King's initial concerns were:
• If Aloha defaulted on the loan, attorneys for the joint venture wanted to automatically foreclose on Aloha's collateral without seeking court approval.
King called the language an "unacceptable provision" because the bankruptcy court has the authority to decide whether the lenders can pursue Aloha's collateral.
• Aloha may be able to reclaim some money it paid to vendors before filing for bankruptcy protection in December. And attorneys for the Goldman Sachs and Ableco joint venture wanted a preferential claim against any money Aloha might collect.
• Goldman Sachs-Ableco also wanted the right to assign their loan to Aloha to someone else and be absolved from any liability. King called that provision "very aggressive" and said he had never seen a financing agreement fall apart because of the absence of such language.
Attorneys for some of the parties said yesterday that they had been working on the deal around the clock for five days because Aloha needed the loan badly.
In court papers, Aloha officials said the money would help pay the salaries of the company's 3,680 employees, among other operating expenses.
Banmiller said employee paychecks would be processed on schedule and passengers would see no change in service while the company awaited the court's ruling.
Reach Dan Nakaso at [email protected] or at 525-8085.
Posted on: Friday, March 25, 2005
Aloha loan OK'd for interim
By Dan Nakaso
Advertiser Staff Writer
A U.S. Bankruptcy Court judge last night gave interim approval for a loan to Aloha Airlines worth up to $65 million after his initial concerns about the financing plan were addressed.
Aloha, which filed for bankruptcy protection on Dec. 30, had a signed agreement with a joint venture involving Goldman Sachs Credit Partners LP, a unit of Goldman, Sachs & Co., and Park Avenue-based Ableco Finance LLC, to each provide $32.5 million.
Judge Lloyd King — sitting in for Judge Robert Faris, who usually presides over Aloha's bankruptcy proceedings — initially said he had particular concerns about three terms of the loan, some of which King characterized as "very aggressive" and highly unusual for a bankruptcy case.
In an afternoon hearing, King said his concerns prevented him from approving the loan. Later in the evening, the parties involved in the case returned to King's chambers with a revised proposal that King approved on an interim basis, a spokesman for Aloha said.
The interim order runs to April 25, or until a final order is approved by the court, whichever comes first.
"This agreement enables Aloha to meet our financial objectives, which includes paying of our (federal) loan and our commercial bank loans, and provides us with the working capital to implement our financial restructuring and go-forward business plan for a quick exit from bankruptcy," said David Banmiller, Aloha's president and chief executive officer.
King's initial concerns were:
• If Aloha defaulted on the loan, attorneys for the joint venture wanted to automatically foreclose on Aloha's collateral without seeking court approval.
King called the language an "unacceptable provision" because the bankruptcy court has the authority to decide whether the lenders can pursue Aloha's collateral.
• Aloha may be able to reclaim some money it paid to vendors before filing for bankruptcy protection in December. And attorneys for the Goldman Sachs and Ableco joint venture wanted a preferential claim against any money Aloha might collect.
• Goldman Sachs-Ableco also wanted the right to assign their loan to Aloha to someone else and be absolved from any liability. King called that provision "very aggressive" and said he had never seen a financing agreement fall apart because of the absence of such language.
Attorneys for some of the parties said yesterday that they had been working on the deal around the clock for five days because Aloha needed the loan badly.
In court papers, Aloha officials said the money would help pay the salaries of the company's 3,680 employees, among other operating expenses.
Banmiller said employee paychecks would be processed on schedule and passengers would see no change in service while the company awaited the court's ruling.
Reach Dan Nakaso at [email protected] or at 525-8085.
RJP
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Paperclips for sale! The Fire Sale at AQ....
Posted on: Thursday, March 31, 2005
Aloha sheds jet, sticky notes
By Dan Nakaso
Advertiser Staff Writer
Aloha Airlines will return a second leased Boeing 737-700 jet by Sunday as part of the company's $60 million cost-cutting effort, and at the same time hopes to unload unneeded pencils, sticky notes and pins that read "Aloha Is Our Airline."
Aloha, which filed for bankruptcy protection on Dec. 30, will return the plane to owner GECAS after sending back another 737-700 to the Royal Bank of Scotland in February.
The company has said it hopes to save $17 million by returning planes, renegotiating leases and deferring payments, among other plane-related cost cuts.
In its latest financial report to the U.S. Bankruptcy Court, Aloha reported a $5.4 million loss for February on gross sales of $35.1 million and operating expenses of $40.2 million. For the first two months after it filed for bankruptcy, Aloha has lost a total of $8.1 million.
In a motion yesterday, the company also asked for court permission to sell $9,800 worth of computers, office furniture, office supplies and Aloha items it no longer needs from its soon-to-be-shuttered operations in Vancouver, British Columbia, and Burbank, Calif.
Aloha plans to discontinue its Burbank flights on Saturday and its Vancouver service April 11.
The company said in its court filing yesterday that it's easier to sell the items near their original airport locations because of their relative low value and the cost of shipping them back to Honolulu.
The $2,000 worth of goods at Burbank and $7,800 in goods in Vancouver include a blue Aloha Airlines carpet, an Aloha Airlines boarding gate sign, 10 boxes of boarding passes, plastic waste baskets, paper shredders and paper clips.
Posted on: Thursday, March 31, 2005
Aloha sheds jet, sticky notes
By Dan Nakaso
Advertiser Staff Writer
Aloha Airlines will return a second leased Boeing 737-700 jet by Sunday as part of the company's $60 million cost-cutting effort, and at the same time hopes to unload unneeded pencils, sticky notes and pins that read "Aloha Is Our Airline."
Aloha, which filed for bankruptcy protection on Dec. 30, will return the plane to owner GECAS after sending back another 737-700 to the Royal Bank of Scotland in February.
The company has said it hopes to save $17 million by returning planes, renegotiating leases and deferring payments, among other plane-related cost cuts.
In its latest financial report to the U.S. Bankruptcy Court, Aloha reported a $5.4 million loss for February on gross sales of $35.1 million and operating expenses of $40.2 million. For the first two months after it filed for bankruptcy, Aloha has lost a total of $8.1 million.
In a motion yesterday, the company also asked for court permission to sell $9,800 worth of computers, office furniture, office supplies and Aloha items it no longer needs from its soon-to-be-shuttered operations in Vancouver, British Columbia, and Burbank, Calif.
Aloha plans to discontinue its Burbank flights on Saturday and its Vancouver service April 11.
The company said in its court filing yesterday that it's easier to sell the items near their original airport locations because of their relative low value and the cost of shipping them back to Honolulu.
The $2,000 worth of goods at Burbank and $7,800 in goods in Vancouver include a blue Aloha Airlines carpet, an Aloha Airlines boarding gate sign, 10 boxes of boarding passes, plastic waste baskets, paper shredders and paper clips.
English
Well-known member
- Joined
- Nov 26, 2001
- Posts
- 3,374
Good news then bad news, then good news, then ?
Aloha Airlines Closes on Financing, Pays Off ATSB
HONOLULU, April 1 /PRNewswire/ -- Aloha Airgroup, Inc. and its principal
operating subsidiary, Aloha Airlines, Inc., today announced that they
have finalized a $65 million debtor-in-possession (DIP) financing
facility with Ableco Finance, LLC, an affiliate of Cerberus Capital
Management, L.P., and Goldman Sachs Credit Partners, L.P. With the
facility secured, Aloha's first order of business is to use a portion
of the funds to pay off its Air Transportation Stabilization Board
(ATSB) federal loan guarantee and certain local bank term loans.
"We are extremely fortunate to have aligned ourselves with two highly
respected financial institutions such as Cerberus and Goldman Sachs,"
said David A. Banmiller, Aloha's president and chief executive officer.
"This financing commitment from our new lenders is a significant step in
our goal to quickly exit bankruptcy and represents a vote of confidence
in our restructuring business plan."
Aloha is repaying its ATSB loan guarantee two and a half years ahead of
its scheduled maturity. The ATSB program was designed to help the
nation's air carriers recover from financial losses due to the
terrorist attack on the United States on September 11, 2001.
"Post-911, Aloha was most grateful to be awarded a loan guarantee by the
ATSB," said Banmiller. "Today we have met that obligation and now with
new working capital, we will accelerate our business plan to achieve
financial stability and exit from bankruptcy."
Prior to obtaining the Court-approved DIP loan, Aloha had already paid
back $24 million to ATSB due to wage concessions and productivity
improvements from employees.
"Each and every one of our employees is to be commended for assisting
the Company in its efforts to rebound from the industry-wide problems
that have plagued all carriers over the past four years," said
Banmiller. "With the continued support of our employees, lenders and
business partners, we are sure to succeed in reorganizing and emerging
as a stronger airline."
Source: Aloha Airlines
Aloha Airlines Closes on Financing, Pays Off ATSB
HONOLULU, April 1 /PRNewswire/ -- Aloha Airgroup, Inc. and its principal
operating subsidiary, Aloha Airlines, Inc., today announced that they
have finalized a $65 million debtor-in-possession (DIP) financing
facility with Ableco Finance, LLC, an affiliate of Cerberus Capital
Management, L.P., and Goldman Sachs Credit Partners, L.P. With the
facility secured, Aloha's first order of business is to use a portion
of the funds to pay off its Air Transportation Stabilization Board
(ATSB) federal loan guarantee and certain local bank term loans.
"We are extremely fortunate to have aligned ourselves with two highly
respected financial institutions such as Cerberus and Goldman Sachs,"
said David A. Banmiller, Aloha's president and chief executive officer.
"This financing commitment from our new lenders is a significant step in
our goal to quickly exit bankruptcy and represents a vote of confidence
in our restructuring business plan."
Aloha is repaying its ATSB loan guarantee two and a half years ahead of
its scheduled maturity. The ATSB program was designed to help the
nation's air carriers recover from financial losses due to the
terrorist attack on the United States on September 11, 2001.
"Post-911, Aloha was most grateful to be awarded a loan guarantee by the
ATSB," said Banmiller. "Today we have met that obligation and now with
new working capital, we will accelerate our business plan to achieve
financial stability and exit from bankruptcy."
Prior to obtaining the Court-approved DIP loan, Aloha had already paid
back $24 million to ATSB due to wage concessions and productivity
improvements from employees.
"Each and every one of our employees is to be commended for assisting
the Company in its efforts to rebound from the industry-wide problems
that have plagued all carriers over the past four years," said
Banmiller. "With the continued support of our employees, lenders and
business partners, we are sure to succeed in reorganizing and emerging
as a stronger airline."
Source: Aloha Airlines
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