Frontier Announces Republic Airways Holdings As Winner Of Auction

Sat, 15 Aug '09

Southwest Bid Sidetracked By Labor Issues

 

Frontier Airlines Holdings announced Thursday that Republic Airways Holdings, Inc. has been declared the winning bidder in the auction to acquire Frontier. The auction was conducted under procedures established in Frontier’s Chapter 11 bankruptcy cases.

Republic submitted the highest and best bid, which included substantial improvements from its original investment proposal. Republic waived virtually all conditions precedent to closing and has advised Frontier that it yesterday received Hart-Scott- Rodino antitrust clearance for the transaction. Republic also agreed to waive distributions on its $150 million prepetition unsecured claim, which is expected to result in a 94 percent increase in the distribution to Frontier’s general unsecured creditors. The selection of Republic’s bid was made in consultation with the Creditors’ Committee appointed in Frontier’s Bankruptcy Case.

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