HONOLULU -- Major developments were made overnight regarding the Aloha Cargo shutdown.

Sources told KITV that negotiations were done to potentially resurrect the carrier's cargo business.

The airline and its main lender, GMAC, are discussing a potential sale of cargo to one of the two companies that dropped out of the bidding, sources said.

The deal may also involve working some settlement out with the pilots union, sources said. A pilot union spokesman said he has not heard from the company but would be willing to talk.

Local companies have been scrambling to find alternative air freight options since Aloha Cargo accounted for 85 percent of the state's interisland business.