Frontier secures DIP!

[stratus72]

Breaking news from Denver. Frontier has secured DIP from a private firm in Washington DC. Still needs to be approved by the Judge, but all indications is that it will have no problem going through. This does not mean we will survive forever, but it is a great start to weathering the storm. The interest rate is rumored to be very favorable and not some sky high number. In addition, while not official, the amount of furloughs is believed to be less than the 155 put forth to the state during filing. We'll see what happens...sorry SW, looks like Concourse A is safe for now.

 

[FlyinPiker]

Awesome...hope the boys upstairs have their ******************** together!

 

[captain dad]

Good Luck guys. I'm pulling for ya!

 

[Shrek]

Hang in there F9.......awesome news !!!!!!!

 

[ultrarunner]

Awesome...hope the boys upstairs have their ******************** together!

If they did....well...never mind....

 

[stratus72]

Awesome...hope the boys upstairs have their ******************** together!

You and me both. If they didn't we wouldn't have made it this far. Nothing is assured, but this is a great start for us. Many thought we were toast...including myself at times. Hoping for the best. Shrek, where are you these days?

 

[spinproof]

You and me both. If they didn't we wouldn't have made it this far. Nothing is assured, but this is a great start for us. Many thought we were toast...including myself at times. Hoping for the best. Shrek, where are you these days?

The very fact you have made it this far bodes well for the future. May oil continue its decline for us all!

 

[Shrek]

You and me both. If they didn't we wouldn't have made it this far. Nothing is assured, but this is a great start for us. Many thought we were toast...including myself at times. Hoping for the best. Shrek, where are you these days?

At UAL........furloughed SEP 10.(Part of the 950 getting furloughed)

Maybe end up in Vietnam for a contract until this all shakes out.......

 

[Shrek]

DENVER, July 25 /PRNewswire/ -- Frontier Airlines Holdings, Inc. today announced it has received a $75 million commitment in post-petition debtor-in-possession (DIP) financing from Perseus LLC, a private investment firm based in Washington, D.C. with offices in Evergreen, Colorado, New York and Munich. Perseus has also agreed to serve as equity sponsor for Frontier's plan of reorganization, allowing Perseus to purchase 79.9% of the equity in the reorganized company for $100 million. The DIP facility and plan sponsorship are subject to bankruptcy court approval and to various conditions.

[SIZE=-2] [/SIZE]
"Today's announcement is a major boost to Frontier and builds momentum toward its emergence from bankruptcy as a viable enterprise. The $75 million commitment in DIP financing from Perseus is a significant vote of confidence in the employees of Frontier, our product and business plan," said Sean Menke, Frontier President and Chief Executive Officer. "Despite the current challenges facing the airline industry, these transactions help point the way towards Frontier's emergence from bankruptcy as a competitive, sustainable airline."
"We are enthusiastic about the opportunity to invest in the future of Frontier," said Brian Leitch, Senior Managing Director of Perseus. "We believe that Frontier has the highest-quality affordable coach product in the domestic airline industry. We are impressed by Frontier's excellent employees and friendly customer service, as well as the numerous product characteristics that distinguish Frontier from its competitors. Industry data supports our conclusion that when given a choice, the majority of coach travelers prefer Frontier over the competitive options. The airline industry is in a state of transition and some degree of turmoil. Although Frontier has been buffeted by recent fuel price increases and certain other issues, we believe that Frontier has proven that it deserves a chance to succeed in this challenging market, and we are proud to help it do so."
Leitch continued, "We have named our acquisition affiliate Go Flip Go, L.L.C, as a symbol of our desire to encourage and preserve Frontier's unique cultural attributes. Of course, we also want to support Larry, Hector, Grizwald, Jack, Sally, the penguins and all the other Frontier animals."
Frontier filed a motion today with the U.S. Bankruptcy Court for the Southern District of New York. Upon court approval, Perseus will provide funding under the proposed DIP credit facility in two installments to support the company's working capital needs.
The proposed DIP funding, coupled with Frontier's negotiations with partners to improve liquidity, reduce expenses, and preserve cash, is expected to provide sufficient working capital for the Company's operations. The Company continues to work with its partners and employees to obtain additional liquidity, reduce expenses and enhance revenues. "We are grateful that many of our key vendors and business partners, as well as all of our employees, have stepped up and made financial sacrifices to help provide Frontier with a lot of staying power," Menke said. "Through a variety of transactions and business initiatives, we have improved our liquidity over a very short period of time. All of this support reaffirms the fundamental business changes we have been making since the beginning of the year. We continue to adjust capacity and realign our route network to leverage our brand strengths and market awareness during a period of severe industry turmoil."

 

[stratus72]

At UAL........furloughed SEP 10.(Part of the 950 getting furloughed)

Maybe end up in Vietnam for a contract until this all shakes out.......

Best of luck to you.