Posted on: Friday, February 25, 2005

Aloha Air lines up a $90M investor

By Dan Nakaso
Advertiser Staff Writer

Aloha Airlines Inc., which filed for Chapter 11 bankruptcy protection on Dec. 30, announced an agreement in principle yesterday to receive up to $90 million in financing from MatlinPatterson Global Opportunities Partners II LP.

Aloha filed a motion with the Bankruptcy Court yesterday requesting an expedited hearing on the agreement.

MatlinPatterson Global is a private equity investment fund managed by MatlinPatterson Asset Management LLC. The publication Pensions and Investments describes MatlinPatterson as a "distressed debt fund" that buys into bankrupt companies.

"This agreement with MatlinPatterson takes Aloha Airlines to the threshold of exiting bankruptcy in record time," said David A. Banmiller, Aloha's president and chief executive officer.

MatlinPatterson was launched in 2002 by David Matlin. Last year, Matlin recruited Rudolph Giuliani, former mayor of New York City, to gain control of MCI Inc.

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or at 525-8085.