The bankruptcy court overseeing Frontier Airlines' Chapter 11 restructuring today gave the nod to the carrier's plan of reorganization, setting the stage for an exit "on or about" Oct. 1, Frontier announced.
When Frontier exits bankruptcy, it will do so under its own brand owned by Republic Airways Holdings—a sharp contrast from Southwest Airlines' failed plan to merge Frontier's operations under the Southwest flag
(BTNonline, Aug. 14). A U.S. bankruptcy court last month approved Republic's plan to purchase 100 percent of Frontier's stock for $108.75 million and waive a $150 million unsecured claim.
Indianapolis-based Republic operates three regional carriers—Chautauqua Airlines, Republic Airlines and Shuttle America—and in July completed its acquisition of Midwest Airlines from private equity firm TPG Capital for $6 million in cash and a $25 million five-year note.
"Many people doubted that we would even survive, let alone accomplish a successful reorganization, provide a recovery for our creditors and emerge a stronger competitor and company," Frontier president and CEO Sean Menke today said in a statement. "Upon consummation of our plan of reorganization with Republic, we will be a successfully restructured airline, well positioned to be a competitive, successful, sustainable airline for years to come."
Frontier in April 2008 filed for Chapter 11 bankruptcy protection, after its primary credit card processor increased the share of customer receipts it would hold
(BTNonline, April 11, 2008).