Court Confirms Mesaba Reorganization Plan

The US Bankruptcy Court confirmed Mesaba’s reorganization plan in preparation for it to emerge from bankruptcy later this month. The ruling means the plan is acceptable to creditors and satisfies requirements of the bankruptcy code. The plan implements the stock repurchase and reorganization agreement with Northwest, struck earlier this year through which the regional would become a subsidiary of the major carrier. The restructuring reduces costs by $68 million annually and secures its core business as a Northwest Airlink, flying 49 Saab 340s. It also reconfirms Northwest’s plans for Mesaba to launch Bombardier CRJ 900 operations with 36 of the aircraft ordered by the major carrier last year. Related Story