A federal bankruptcy judge approved another $1 million to PenAir, increasing their loan to outside creditor Debello Investors, LLC from $3.5 million to $4.5 million.

In court, the airline's lawyer, Cabot Christianson, said PenAir doesn’t have enough money to get through the winter, saying March is its low point. Christianson also said that the added loan would get the airline company through the end of July.

PenAir declared Chapter 11 bankruptcy in August 2017. Chapter 11 allows the company time to reorganize before creditors can go after it. A few days later, the company shut down regional routes in Portland, Oregon and Denver.

The airline expanded its reach to the Lower 48 in 2011, but bankruptcy paper work says the new hubs did not live up to expectations. PenAir used a federal program called the Essential Air Service to subsidize those flights.

At the time, the company’s CEO, Danny Seybert, said the company would emerge from bankruptcy a stronger airline.

Bankruptcy paperwork shows PenAir owes between $10 to $50 million to its creditors.

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