P. M. BRIEFING - $3.5 Million Freed for Braniff
ORLANDO, Fla. —
A federal bankruptcy judge ordered Bank of America to release $3.5 million today to Braniff Inc. for operating expenses during the airline’s Chapter 11 bankruptcy reorganization.
Owed $15.1 million, Bank of America became one of Braniff’s secured creditors when the airline sought Chapter 11 protection Sept. 28 for the second time this decade. The bank holds $6.9 million in the airline’s account.
Judge C. Timothy Corcoran ordered Bank of America late Thursday night to release a portion of the total but rejected a deal that would have released more--$5.9 million--to Braniff while giving the bank control of the airline’s assets at Orlando International Airport.
