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Published on 12/11/2006 in the Prospect News Distressed Debt Daily.

Mesaba creditors committee asks court to reconsider CBA approval claims language

By Caroline Salls

Pittsburgh, Dec. 11 - Mesaba Aviation, Inc.'s official committee of unsecured creditors asked the U.S. Bankruptcy Court for the District of Minnesota to reconsider language in its order approving the flight attendants, pilots and mechanics amended collective bargaining agreements that forever bars reconsideration of claims granted under the agreements, according to a Friday court filing.

According to the motion, each of the agreements gives the respective union an allowed unsecured claim against Mesaba's estate as of the Dec. 1 effective date of the agreements on account of concessions made by the unions.

The committee said the claims totaled $22.39 million, with the pilots' union receiving a $14.24 million claim, the mechanics a $4.81 million claim and the flight attendants a $3.35 million claim.

The committee said the estimated pool of unsecured claims before the allowance of these claims was $59 million, so the allowance of the agreement claims resulted in a 38% increase in the estimated total unsecured claims.

In addition, the committee said it objected to a provision in the order that said the claims were not subject to reconsideration on the grounds that all parties, including the committee, would be forever barred from seeking reconsideration of the claims.

A hearing is scheduled for Dec. 22.

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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