Creditors approve Frontier's restructuring plan

Washington DC
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Creditors have approved Frontier Airlines' reorganization plan as the Denver-based operator aims to exit Chapter 11 bankruptcy protection as a subsidy of Republic Airways Holdings this month.

Frontier says that 92.58% of voting creditors approved the plan.

The carrier also notes that the deadline has closed for filing objections to its restructuring, and Frontier's legal representatives believe that most of the objections filed were technical or procedural.

"Frontier should be able to consensually resolve most or all of the objections, setting the stage for a largely uncontested confirmation hearing," the carrier says in a statement.

Its confirmation hearing is scheduled for 10 September and follows Republic being named in August as the winning bidder to acquire Frontier.

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 agreeemnt between Republic and Frontier once Frontier entered Chapter 11 in April 2008.