Legend Airlines Approval By The United Sates Bankruptcy Court


Legend Airlines Approval By
The United Sates Bankruptcy Court  

December 29, 2000, Dallas, Texas Legend Airlines Inc. received the green light from the United Sates Bankruptcy Court allowing it to use $1 million in loans to restart flight operations. Legend Airlines has reported that Legend has now secured the necessary funding to resume operations and we will be flying again in January. Legend will announce an exact start date and publish the schedules after the first of the year. 

Legend's chairman and president, Allan McArtor reported the airline will service LaGuardia Airport in New York and Dulles in Washington and they could resume as early as mid January and in early spring begin service to San Jose, Calif., early in the spring. The court hearing came after the Dallas based carrier secured $20 million from a private investment group. Legend must return to court to use more than the $1 million approved Friday by U.S. Bankruptcy Judge Robert McGuire, however.

Legend, which launched its first flight in April, had raised $62 million in start-up capital but failed to find enough financing to complete a $40 million private equity offering. If Legend receives approval for its financing plan, it should be able to file its reorganization plan by the end of January, Gerber said. Until it shut down flights on Dec. 2, Legend had catered to business travelers, using 56 seat jets offering nearly four feet of legroom, leather seats, satellite television and gourmet meals.

Legend Airlines was founded to provide business travelers with a high quality experience in every respect. Legend Airlines began flying in April 2000. This after a three year legal battle won the right to fly outside Texas. It was the first time since 1974 that an airline has flown from Love Field to a city beyond Texas and seven nearby states. A law called the Wright Amendment limits flights out of Love Field to those states as a means of protecting Dallas Fort Worth International's interests. Legend's inaugural flight, originally scheduled to take off Feb. 29, was delayed after the Federal Aviation Administration said custom-made galleys for the cabins failed crash tests.
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