Court confirms Frontier’s restructuring plan

Washington DC
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Frontier Airlines will emerge from Chapter 11 bankruptcy protection as a subsidy of Republic Airways Holdings around 1 October after the bankruptcy court confirmed its restructuring plan.

No objections were offered today during a bankruptcy court hearing to confirm the plan as Frontier resolved "the few" objections to its reorganization plan prior to today.

Frontier previously characterized most of the objections as technical or procedural.

The court confirmation comes after Frontier's creditors approved the plan-with 92.58% of voting creditors giving their endorsement to the scheme.

Republic, one of Frontier's largest unsecured creditors, tabled a $108 million bid for Frontier after having previously providing the carrier $40 million in debtor-in-possession financing.

Republic also agreed to wave the distribution in the $150 million unsecured claim it logged under Frontier's Chapter 11 restructuring. The claim stemmed from the termination of an Embraer E-170 feeder agreement between Republic and Frontier once Frontier entered Chapter 11 in April 2008.

"This is an extremely proud day for everyone in our company," Frontier president and CEO Sean Menke says in a statement. "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. 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."