Pinnacle Airlines is seeking Chapter 11 bankruptcy - Action News 5 - Memphis, Tennessee

Pinnacle Airlines is seeking Chapter 11 bankruptcy

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Pinnacle Airlines is seeking Chapter 11 bankruptcy Pinnacle Airlines is seeking Chapter 11 bankruptcy
MEMPHIS, TN -

(WMC-TV) – Memphis-based Pinnacle Airlines is seeking Chapter 11 bankruptcy protection.

The company maintains it will be business as usual. There is no indication of layoffs or flight reductions.

Company leaders say they need to turn things around for the long-term and that it's going to take millions of dollars to do it.

Pinnacle's employees have been on notice about the situation since January and on Sunday it became official.

Pinnacle voluntarily filed for Chapter 11 bankruptcy in the Southern District of New York, which handles many of the country's biggest bankruptcy reorganization cases.

The company says it's a way for the airline to continue developing a plan to address operational and financial challenges.

Pinnacle operates feeder flights for Delta, United and U-S Airways and last summer relocated its headquarters to downtown Memphis.

Delta has committed more than $74 million to Pinnacle to keep the company afloat. Out of those funds, Pinnacle will use more than $44 million to pay back a secured promissory note held by Delta. The rest will be used to fund Pinnacle's ongoing operations.

According to Pinnacle's CEO Sean Menke, Pinnacle intends to "use the Chapter 11 process to reset our financial and operational structure in order to position Pinnacle for viability over the long term."

This all comes a week after the company announced big raises for its top two men in charge.

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