Midwest Restructuring

Midwest Airlines hired restructuring specialists Seabury Group to help it navigate the industry’s economic and fuel crises, which includes grounding a third of its mainline fleet and turning its regional airline partner, Skyway, into a ground services organization, in favor of a capacity purchase agreement with SkyWest. Related Story
The move comes after it was recently acquired by TPG Capital, with Northwest as a minority stakeholder as part of an effort to avoid a hostile takeover by AirTran. Related Story The Wall Street Journal reported that CEO Timothy Hoeksma, who called the airline’s situation critical, told employees that the restructuring needs to take place wihtin 30 days. The airline is also seeking additional capital from TPG and negotiating concessions from lessors. TPG is helping for the moment but is awaiting deals with vendors, business partners and employees before investing in the restructuring plan, according to the Journal.