Fri, Jul 31, 2009
Frontier Would Become A Subsidiary Of Republic
Frontier Airlines Holdings, Inc.
Thursday revealed that Southwest Airlines Co. has submitted an
initial non-binding proposal to acquire Frontier under the auction
procedures established in Frontier’s Chapter 11 bankruptcy
cases and approved by the U.S. Bankruptcy Court. The bid is
reported to be $113.6 million.
As previously announced, on July 13 the judge presiding over
Frontier’s Chapter 11 bankruptcy cases in the U.S. Bankruptcy
Court for the Southern District of New York approved a proposed
investment agreement between Frontier and Republic Airways
Holdings, Inc. Pursuant to the investment agreement, Republic
agreed to purchase 100% of the stock of Frontier Holdings upon its
emergence from bankruptcy for $108.75 million, so long as certain
conditions are met. Frontier Airlines Holdings would become a
wholly-owned subsidiary of Republic, an airline holding company
that owns Chautauqua Airlines, Republic Airlines and Shuttle
America.
The Republic investment agreement
provides for an auction period, during which Frontier may seek
higher or otherwise better competing bids. If Frontier identifies
such a bid, it can terminate the Republic investment agreement and
accept the other offer. Under the auction procedures approved by
the Court, interested bidders must submit an initial proposal by
Aug. 3, 2009, and a final proposal by Aug. 10, 2009. Frontier and
its advisors, in consultation with the Unsecured Creditors’
Committee appointed in Frontier’s Chapter 11 cases, will
conduct an auction, if necessary, on Aug. 11, 2009, to consider all
qualified proposals and determine the highest or otherwise best
proposal.
Frontier currently expects to emerge from Chapter 11 this
fall.
Frontier and its subsidiaries filed voluntary petitions for
reorganization under Chapter 11 of the U.S. Bankruptcy Code on
April 10, 2008. More information about Frontier’s Chapter 11
proceedings is available online.
More News
Aero Linx: Model Aeronautical Association of Australia MAAA clubs are about fun flying, camaraderie and community. For over 75 years, the MAAA has been Australia’s largest fl>[...]
Touchdown Zone Lighting Two rows of transverse light bars located symmetrically about the runway centerline normally at 100 foot intervals. The basic system extends 3,000 feet alon>[...]
“Discovery and innovation are central to our mission at Virgin Galactic. We’re excited to build on our successful record of facilitating scientific experiments in subor>[...]
How To Get A Story On Aero-TV News/Feature Programming How do I submit a story idea or lead to Aero-TV? If you would like to submit a story idea or lead, please contact Jim Campbel>[...]
Student Pilot Reported That During Rotation, “All Of A Sudden The Back Of The Plane Kicked To The Right..." Analysis: The student pilot reported that during rotation, “>[...]