Frontier Airlines found better financing to help it work its way out of bankruptcy.
U.S. Bankruptcy Judge Robert Drain in New York on Aug. 5 approved a request for the Denver-based airline to borrow $30 million of up to $75 million from three of its unsecured creditors: Republic Airways Holdings Inc., Credit Suisse Securities (USA) LLC and AQR Capital LLC.
|
|
The financing plan was announced by Frontier a day ahead of the court date and replaced an agreement reached a week earlier in which a Washington, D.C., private investment firm said it would provide up to $100 million to take the airline out of bankruptcy.
Although it provides for less money, Frontier officials said they preferred the revised loan package because it offered lower interest rates and doesn’t automatically turn over control of the airline.
The new loan offer from the creditors came after Frontier agreed to sell six additional planes for $67.3 million.
Frontier, which filed for Chapter 11 bankruptcy protection April 11, is the No. 1 carrier of passenger traffic between Tucson and Denver. Judge Drain has scheduled a Sept. 15 hearing to consider the airline’s latest finance plan.
Comments
Nicco von ohlen wrote on Nov 9, 2008 11:25 AM: