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Kiwi Loan Approved; Operations to Resume

November 01, 1996|Times Staff and Wire Reports

Kiwi International Air Lines Inc. won Bankruptcy Court approval for a $5-million loan from Wasatch International Corp. that will allow the airline to resume operations. Kiwi suspended operations Oct. 15 after running out of money; it filed for Chapter 11 bankruptcy protection Sept. 30. It has up to one year to pay back the loan at 10% interest. Kiwi said it expects to receive the first $500,000 on Monday. That would allow the company to resume flights by Nov. 20, Kiwi attorney Howard Greenberg said. Also, Wasatch sent Kiwi a letter saying the Boynton Beach, Fla.-based investment company plans to assist Kiwi in getting the $15 million to $20 million Kiwi would need to emerge from Chapter 11. That would give Wasatch control of Newark, N.J.-based Kiwi.

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