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.
Republic is in the seat to win either way this auction goes down. 40M+28.5M and the feeder contract deal and this could be more than it's worth for southwest to eliminate a "scrappy" competitor like Frontier. Because that is EXACTLY what Southwest's intentions are, TO eliminate Frontier as a competitor (and thorn in their side) because is sre as HELL isn't to bring them into the "Fold".
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.