AIRLINES
From Times Staff and Wire Reports
Continental Collateral Strategy OKd: U.S. Bankruptcy Judge Helen Balick approved Continental Airlines’ plan to declare its Air Micronesia a separate entity, allowing it to be used as collateral by investors who may purchase Continental. Approval was pivotal to Continental’s plans to reorganize and emerge from Chapter 11 bankruptcy protection. Continental will create Continental Micronesia Inc., a wholly owned subsidiary, to separate the assets of the Pacific division from the rest of the airline. Those assets then could be used to secure loans of up to $225 million for Continental’s emergence from Chapter 11 with a new owner.
