Originally Posted by FlyingKat

In New York punitive damages are paid by the company, not insurance. Because of this all of the legal actions by the 3407 families against Colgan are on hold.

Flight 3407 kin set back by Pinnacle bankruptcy - Washington - The Buffalo News

The only way out of this would be if the venue is changed to Tennessee or Federal Court. But if this comes under New York law Pinnacle and any successor organization will be on the hook for punitive damages, not insurance.

I agree that the internal situation at Pinnacle right now doesn't bode well for the future of the company. It's not good when your future rides on the whims of Mother Delta.