Airline allowed to settle claims

Dow Jones Newswires

Published December 20, 2007 at 12:05 a.m.

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A judge has allowed Aspen Executive Air to settle with some of its creditors and continue to control its bankruptcy proceedings.

Judge Mary F. Walrath of the U.S. Bankruptcy Court in Wilmington, Del., denied a federal official's request Tuesday to convert the company's Chapter 11 case to a Chapter 7 liquidation. The official had argued for the liquidation because she said the settlement benefits a few creditors at the expense of many.

The Aspen-based members-only luxury airline said its settlement with three creditors and its bankruptcy lender resolves $61 million worth of claims, which it said "is the overwhelming majority of all known claims."

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