Midway Secures Loan to Continue Operations
Posted August 23, 2001 8:00 a.m. EDT
RALEIGH, NC — Midway Airlines has secured a $15 million loan that should keep it going for at least a little while and allow some of the 700 employees who were laid off last week to get back wages.
"The staff changes that are coming, have in some cases begun, and in other cases will take as long as six months," says CEO Robert Ferguson.
The airline filed for Chapter 11 bankruptcy last week and then sought a loan to keep planes in the air.
Ferguson says Wexford Capital, a venture firm, agreed to a $15 million loan on Wednesday. It is now up to a bankruptcy court to approve the deal. The judge will rule on the loan deal on Thursday.
With the infusion of cash, the bankruptcy court will decide how creditors will be paid, including the Midway employees that have already been laid off.
Last week, the airline fired 700 employees, parked 17 planes, and cancelled several routes to reduce costs.