Aloha Airlines will auction off its lawsuit against the owner of go! airline today in hopes of raising at least $10 million to pay off creditors.

Bidding on the rights to the potential payout from the lawsuit will begin with a $10 million offer from Aloha's largest investor, Yucaipa Cos.

The lawsuit alleges that go! and its Phoenix-based parent, Mesa Air Group, misused confidential information to launch its interisland service and drive Aloha out of business.

A similar lawsuit by Hawaiian Airlines was settled earlier this year for $52.5 million. Aloha filed for bankruptcy and shut down its passenger service in March. The proceeds from the sale of the lawsuit will go toward paying off Aloha's creditors.

"I have determined that selling the debtor's interest in the Mesa litigation to Yucaipa ... is in the best interest of the debtor's estate," said Dane Field, Aloha's court-appointed trustee, in a recent bankruptcy court filing.

U.S. Bankruptcy Judge Lloyd King will conduct the auction this morning. Bidding will start with Yucaipa's $10 million offer and competing bidders would need to offer at least $11 million to top that bid.

Aloha's lawsuit is scheduled to go to trial in October before U.S. District Judge David Ezra.

Legal experts say that the sale of a company's legal claims, especially in a bankruptcy case, is not unusual. What is unusual is the size of the claims and the cost of litigating Aloha's lawsuit.

Although Aloha has not yet said how much it will seek in damages, the carrier's claims will likely be comparable to the $173 million initially sought by Hawaiian in its suit against Mesa.

In October, U.S. Bankruptcy Judge Robert Faris awarded Hawaiian $80 million in damages and nearly $4 million in legal fees before the suit was settled in April for $52.5 million.

Mesa may bid against Yucaipa for the lawsuit in what could amount to an attempt to settle the lawsuit cheaply.

Unlike other bidders, Yucaipa does not need to put up cash to bid on the suit. As the airline's largest creditor, it could take its $10 million out of the money it is owed by the Aloha.

Bankruptcy court filings show that Aloha owes Yucaipa more than $106 million.

Yucaipa is a private investment firm headed by California billionaire Ron Burkle. In 2005, Yucaipa and former professional football star Willie Gault purchased Aloha and brought it out of bankruptcy.

The 62-year-old Aloha was the state's second-largest airline with more than 3,500 employees. The company shut down its passenger service on March 31 after losing more than $120 million in the past two years because of soaring fuel prices and a heated interisland fare war.

The bankrupt airline sold off its profitable cargo and contract services operations and is now in the process of selling off assets, such as aircraft parts, equipment and its legal claims, to pay off its creditors.