Metro752
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Judge invalidates Yucaipa purchase of Aloha name
The rule blocks go!'s rebranding of its rival until at least a new auction can be held
By Dave Segal
POSTED: 11:57 a.m. HST, Mar 03, 2009
A federal Bankruptcy Court judge invalidated an auction today that would have paved the way for Mesa Air Group's go! to take over the Aloha Airlines name.
Judge Lloyd King, emphasizing that the auction to buy Aloha's intellectual property should have been a public process, blasted the attorneys conducting the auction for refusing to allow in Honolulu Advertiser reporter Rick Daysog, who had written a letter to the court voicing his complaint.
King, who said the auction must be reheld, appeared during much of today's hearing to be entertaining the idea of invalidating the winning bid of Yucaipa Cos. and allowing backup bidder Hawaiian Airlines to take over the Aloha name.
Instead, King ruled that the auction must be reheld and that Aloha Airlines trustee Dane Field must return Hawaiian's $50,000 deposit.
Yucaipa, the former majority shareholder of Aloha, had submitted a winning credit bid of $750,000 for Aloha's intellectual property in which Yucaipa would reduce the amount of money that it was owed by Aloha.
However, at a Dec. 3 confirmation hearing, King postponed approving the auction after Yucaipa, which had bought an Aloha lawsuit against Mesa, reached an out-of-court settlement allowing Mesa interisland carrier go! to rebrand its planes as Aloha.
Aloha had claimed in its lawsuit against Mesa that the Phoenix-based carrier used predatory pricing and proprietary information in an attempt to drive Aloha out of the Hawaii market. Aloha eventually ceased passenger operations on March 31, 2008, and blamed go! and escalating fuel prices for its demise.
A federal Bankruptcy Court judge invalidated an auction today that would have paved the way for Mesa Air Group's go! to take over the Aloha Airlines name.
Judge Lloyd King, emphasizing that the auction to buy Aloha's intellectual property should have been a public process, blasted the attorneys conducting the auction for refusing to allow in Honolulu Advertiser reporter Rick Daysog, who had written a letter to the court voicing his complaint.
King, who said the auction must be reheld, appeared during much of today's hearing to be entertaining the idea of invalidating the winning bid of Yucaipa Cos. and allowing backup bidder Hawaiian Airlines to take over the Aloha name.
Instead, King ruled that the auction must be reheld and that Aloha Airlines trustee Dane Field must return Hawaiian's $50,000 deposit.
Yucaipa, the former majority shareholder of Aloha, had submitted a winning credit bid of $750,000 for Aloha's intellectual property in which Yucaipa would reduce the amount of money that it was owed by Aloha.
However, at a Dec. 3 confirmation hearing, King postponed approving the auction after Yucaipa, which had bought an Aloha lawsuit against Mesa, reached an out-of-court settlement allowing Mesa interisland carrier go! to rebrand its planes as Aloha.
Aloha had claimed in its lawsuit against Mesa that the Phoenix-based carrier used predatory pricing and proprietary information in an attempt to drive Aloha out of the Hawaii market. Aloha eventually ceased passenger operations on March 31, 2008, and blamed go! and escalating fuel prices for its demise.
Judge invalidates Yucaipa purchase of Aloha name
The rule blocks go!'s rebranding of its rival until at least a new auction can be held
By Dave Segal
POSTED: 11:57 a.m. HST, Mar 03, 2009
A federal Bankruptcy Court judge invalidated an auction today that would have paved the way for Mesa Air Group's go! to take over the Aloha Airlines name.
Judge Lloyd King, emphasizing that the auction to buy Aloha's intellectual property should have been a public process, blasted the attorneys conducting the auction for refusing to allow in Honolulu Advertiser reporter Rick Daysog, who had written a letter to the court voicing his complaint.
King, who said the auction must be reheld, appeared during much of today's hearing to be entertaining the idea of invalidating the winning bid of Yucaipa Cos. and allowing backup bidder Hawaiian Airlines to take over the Aloha name.
Instead, King ruled that the auction must be reheld and that Aloha Airlines trustee Dane Field must return Hawaiian's $50,000 deposit.
Yucaipa, the former majority shareholder of Aloha, had submitted a winning credit bid of $750,000 for Aloha's intellectual property in which Yucaipa would reduce the amount of money that it was owed by Aloha.
However, at a Dec. 3 confirmation hearing, King postponed approving the auction after Yucaipa, which had bought an Aloha lawsuit against Mesa, reached an out-of-court settlement allowing Mesa interisland carrier go! to rebrand its planes as Aloha.
Aloha had claimed in its lawsuit against Mesa that the Phoenix-based carrier used predatory pricing and proprietary information in an attempt to drive Aloha out of the Hawaii market. Aloha eventually ceased passenger operations on March 31, 2008, and blamed go! and escalating fuel prices for its demise.
A federal Bankruptcy Court judge invalidated an auction today that would have paved the way for Mesa Air Group's go! to take over the Aloha Airlines name.
Judge Lloyd King, emphasizing that the auction to buy Aloha's intellectual property should have been a public process, blasted the attorneys conducting the auction for refusing to allow in Honolulu Advertiser reporter Rick Daysog, who had written a letter to the court voicing his complaint.
King, who said the auction must be reheld, appeared during much of today's hearing to be entertaining the idea of invalidating the winning bid of Yucaipa Cos. and allowing backup bidder Hawaiian Airlines to take over the Aloha name.
Instead, King ruled that the auction must be reheld and that Aloha Airlines trustee Dane Field must return Hawaiian's $50,000 deposit.
Yucaipa, the former majority shareholder of Aloha, had submitted a winning credit bid of $750,000 for Aloha's intellectual property in which Yucaipa would reduce the amount of money that it was owed by Aloha.
However, at a Dec. 3 confirmation hearing, King postponed approving the auction after Yucaipa, which had bought an Aloha lawsuit against Mesa, reached an out-of-court settlement allowing Mesa interisland carrier go! to rebrand its planes as Aloha.
Aloha had claimed in its lawsuit against Mesa that the Phoenix-based carrier used predatory pricing and proprietary information in an attempt to drive Aloha out of the Hawaii market. Aloha eventually ceased passenger operations on March 31, 2008, and blamed go! and escalating fuel prices for its demise.
