The sun is not shining on Aloha Airgroup as the Hawaiian airline files for bankruptcy to stay in business. The company blames high fuel costs and a local competitor.
The Honolulu, HI-based airline and freight service filed for chapter 11 bankruptcy protection on Friday. Aloha presented the court with a financial plan in hopes that it can keep up normal operations and retain its 3,500 employees. The financial plan will consist of a cash collateral financing arrangement with its principle capital lender General Motors Acceptance Corporation a subsidiary of private -equity firm Cerberus Capital Management and General Motors.