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Southwest Airlines Co. Message Board

  • meryls777 meryls777 Aug 6, 2009 9:36 AM Flag

    REPUBLIC AIR

    The one oyher bidder for frontier is republic which has the leases on the air bus planes in fact is the major note holder.

    soutwest will have to increase its bid next monday 25 to 50 million for repoblic to take the money and run

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    • Republic has nothing to do with Frontier's aircraft... and especially not the Airbii. Republic provided $40M in DIP financing which is a priority claim to be paid in full upon exit from bankruptcy. In addition, Republic has an approved unsecured claim of $150M. This claim arises from a $200M plus damage claim made by Republic upon the termination of the Republic-Frontier contract (the first contract terminated by Frontier in bankruptcy). The contract was for Republic to serve as a regional feeder to Frontier. The Republic unsecured claim amounts to about half of the unsecured debt, so whatever is paid to the unsecured creditors, about half will go to Republic.

      Because Republic is a bidder they must abstain from the deliberations of the unsecured creditors with respect to the competing bids.

    • I noticed that too. The Republic involvement is a real minefield. Southwest was late to the party, if they wanted Frontier, they should've been on-scene the way Republic was when Frontier entered bankruptcy. Now, they have a rival in the industry standing between them and the acquisition. I have to wonder what Southwest management is thinking sometimes.

 
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