Mesaba files complaint, request for temporary restraining order after Northwest cuts payments

By Caroline Salls

Pittsburgh, Nov. 8 - Mesaba Aviation, Inc. filed a complaint against Northwest Airlines, Inc. and a request for a temporary restraining order against Northwest with the U.S. Bankruptcy Court for the District of Minnesota in connection with Northwest's decision to reduce payments to Mesaba, according to an 8-K filing with the Securities and Exchange Commission.

According to the filing, the complaint concerns Northwest's decision to reduce payments by the amount of aircraft lease payments Mesaba withheld from Northwest following Mesaba's bankruptcy filing.

The complaint contains counts asserting Mesaba's right to recoup its pre-bankruptcy receivable against Northwest, Northwest's violation of an automatic stay and Northwest's violation of Mesaba's right under bankruptcy code to withhold and renegotiate aircraft sublease payments for a period of 60 days following its bankruptcy filing.

Mesaba also filed a motion requesting a temporary restraining order against Northwest that would enjoin Northwest from setting off aircraft sublease payments or otherwise withholding payment due to Mesaba under their airline services agreement and order Northwest to immediately turn over $5.2 million previously withheld from Mesaba.

A hearing on the temporary restraining order is scheduled for Thursday.

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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