Mesaba parent's $55 million in claims reduced to $6.17 million

By Caroline Salls

Pittsburgh, April 20 - Mesaba Aviation, Inc. obtained court approval of a claim compromise with parent Mair Holdings, Inc. that reduces Mair's $55 million in management services agreement and facilities lease claims against Mesaba to $6.17 million, according to a Friday filing with the U.S. Bankruptcy Court for the District of Minnesota.

Specifically, Mair was granted a $2.49 million unsecured claim against Mesaba for a management services agreement compromise claim, as well as a $3.68 million unsecured claim in full satisfaction of any claims Mair has against Mesaba in connection with a facilities lease.

However, Mair will receive no distribution on the $3.68 million component of its unsecured claim until the trustee's proof of claim arising from the facilities lease is disallowed, withdrawn or assigned to Mair.

If the trustee's proof of claim becomes an allowed claim, Mair will not receive any distribution from the estate on account of any facilities lease claims.

Mesaba, an Eagan, Minn.-based Northwest Airlines affiliate, filed for bankruptcy on Oct. 13, 2005. Its Chapter 11 case number is 05-39258.

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