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Published on 8/17/2006 in the Prospect News Distressed Debt Daily.

Mesaba, parent file $281.7 million in proofs of claim against Northwest Airlines

By Caroline Salls

Pittsburgh, Aug. 17 - Mesaba Aviation, Inc. and parent MAIR Holdings, Inc. filed a total of $281.7 million in proofs of claim against Northwest Airlines Corp., according to an 8-K filing with the Securities and Exchange Commission.

MAIR filed a $31.7 million proof of claim, plus other unliquidated amounts.

MAIR said its claim is based on several legal theories, including fraud, negligent misrepresentation, breach of contract and fraudulent inducement.

According to the filing, the amount of MAIR's claim reflects the capital contribution Northwest required MAIR to make to Mesaba before Northwest's bankruptcy, as well as costs MAIR has incurred from Northwest's missed payments to Mesaba and Mesaba's subsequent bankruptcy.

Separately, Mesaba filed a $250 million proof of claim based on breach in connection with its airline services agreement with Northwest.

Mesaba, an Eagan, Minn.-based Northwest Airlines affiliate, filed for bankruptcy on Oct. 13, 2005 in the U.S. Bankruptcy Court for the District of Minnesota. Its Chapter 11 case number is 05-39258.


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