Parent Company of Colgan Air In Financial Trouble

January 21, 2012 Updated Jan 21, 2012 at 12:40 AM EDT

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January 21, 2012 Updated Jan 21, 2012 at 12:40 AM EDT

According to Bloomberg Businessweek.com, the CEO of Pinnacle Airlines -- the owner of Colgan Air -- said in a letter to employees that the company is in the midst of a tough economic crisis, leading financial and legal analysts to speculate of the company may have to enter Chapter 11 bankruptcy.

Colgan Air operated Flight 3407, which crashed in Clarence Center in February of 2009, killing 50 people.

Pinnacle operates regional flights for United Continental Holdings and Delta Air Lines, according to the Businessweek report.

Garry Graber, a bankruptcy attorney with the Buffalo law firm of Hodgson Russ tells Eyewitness News that financial troubles for Pinnacle might not mean Colgan will go bankrupt. He added bankruptcy does not mean that outstanding settlements tied to the tragic crash would not be paid. Insurance policies in place would possibly fulfill any obligations.

Read the Businessweek.com story HERE.