Perseus LLC makes bid for Aloha Airlines

Airline Industry Information, Sept 28, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Perseus LLC, a US-based private equity fund manager, has filed a competing bid for Aloha Airlines in a US bankruptcy court.

Perseus is reportedly claiming that its USD120m offer and plan is better than the one that has been proposed by the other bidder, The Yucaipa Companies LLC. Aloha Airlines said last week that it had found investors that were willing to put USD100m into the airline. The deal is however conditional at best and also includes an exclusivity clause for Yucaipa and Aloha Aviation Investment Group LLC as investors as well as a USD3m break-up fee and reimbursement of expenses, Pacific Business News reported.

The offer from Perseus includes the following terms: Perseus would acquire all or a majority of the airline's assets, including its cargo division, under a new entity named "Newco"; the company would pay USD50m - USD41m toward working capital and USD9m toward paying off creditors; and Newco would also pay off the airline's USD65m bridge financing.

((Comments on this story may be sent to aii.feedback@m2.com))