Friday at 5 p.m. is the deadline for parties to place a bid in writing for the assets of Alaska airline PenAir, which filed for chapter 11 bankruptcy protection a little over a year ago, the Anchorage Daily News reported. An auction is set for Oct. 3 at the Dena'ina Civic and Convention Center, said Jerry McHale, the trustee in the bankruptcy case. The Anchorage-based company is one of the largest regional airlines in the state. It serves a number of rural communities with flights to and from Anchorage. Alaska Airlines and Wexford Capital, an East Coast company that manages hedge funds, are two approved bidders so far, McHale said. Wexford has loaned PenAir money during the bankruptcy. There will be a hearing Oct. 5 to approve a sale based on the successful bid. During the course of the bankruptcy, there were problems with payments due for employees' insurance plans, McHale said. The health plan appeared to be underfunded by about $642,000, according to a court filing from earlier in September.
