Mesaba withdraws DIP request after Mair commitment expires, seeks alternate financing

By Caroline Salls

Pittsburgh, April 12 - Mesaba Aviation Inc. withdrew its request to obtain debtor-in-possession financing from parent Mair Holdings Inc. because the commitment has expired, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Minnesota.

The company said it will seek DIP financing from other sources.

Mair's commitment was for $35 million of secured debtor-in-possession financing, of which $15 million would have been available subject customary funding conditions.

The other $20 million would have been available upon the satisfaction of additional conditions, including Mesaba's delivery of an acceptable five-year business plan by Jan. 31.

Mesaba, an Eagan, Minn.-based Northwest Airlink affiliate, filed for bankruptcy on Oct. 13. Its Chapter 11 case number is 05-39258.

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