Investor bails out, Vegas company scrambling for funds

Wednesday, Oct. 30, 2002 | 11:15 a.m.

An unspecified key investor in National Airlines' refinancing efforts has dropped out, leaving the Las Vegas airline scrambling to remain in operation.

At a U.S. Bankruptcy court hearing today, National attorney Craig Hansen told Judge Linda Riegle that the airline is in "a $2 million hole."

Hansen said the company is seeking new investors or commitments from existing financiers to keep the National flying.

Hansen said the alternative would be the beginning of a shutdown plan and liquidation of the company.

A Nov. 15 court date to review the airline's progress was scheduled.

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