Frontier announces Republic Airways Holdings as winner of auction
Frontier Airlines Holdings declared (13-Aug-2009) Republic Airways Holdings the winning bidder in the auction to acquire Frontier. Southwest Airlines was also bidding. The auction was conducted under procedures established in Frontier’s Chapter 11 bankruptcy cases. Republic submitted the "highest and best bid", according to Frontier, which included "substantial improvements" from its original investment proposal. Republic waived virtually all conditions precedent to closing and has advised Frontier that it received antitrust clearance for the transaction. Republic also agreed to waive distributions on its USD150 million prepetition unsecured claim, which is expected to result in a 94% increase in the distribution to Frontier’s general unsecured creditors. Frontier currently expects to emerge from Chapter 11 this autumn. [more]
Frontier Airlines: "We appreciate the participation of both Republic and Southwest Airlines in our auction process. We are pleased to have Republic as a plan sponsor that will allow Frontier to emerge from bankruptcy as a well-financed, competitive and sustainable airline. This plan provides for Frontier and Lynx to maintain normal operations as a subsidiary of Republic, with further capital and growth opportunities in the future", Sean Menke, President and CEO. Source: Frontier, 13-Aug-2009.
Republic Airways Holdings: “I look forward to welcoming Frontier to our Republic family. Frontier has made impressive strides in returning to sustained profitability in a challenging and uncertain economic environment. We congratulate the employees of Frontier. Their commitment and perseverance during the bankruptcy process has allowed the Frontier brand to survive and thrive", Bryan Bedford, Chairman, President and CEO. Source: Republic Airways Holdings, 13-Aug-2009.