Frontier secures DIP!

[stratus72]

If we end up giving much more then I'm going to leave on my own accord. Love the company but I need to provide for my family.

 

[Cardinal]

For the general edification of interested observers, the pilot group has pretty much run out of generosity. The recent unified militancy on the FAPA board has really impressed me. Deeper cuts and the extension of the "temporary" agreement will go over like a lead balloon. The mechanics have already filed a motion against the DIP agreement on the basis that it would compel them to capitulate, and end-run around the formal process, 1113. In the last month the glow has really worn off. Me thinks management has some surprises coming.

 

[StaySeated]

"the pilot group has pretty much run out of generosity"

That is the understatement of the year. Menke and his band of idiots just had a pay cut pass with 89%, but due to the company's lack of engagement, deceit, lies, and overall contempt for the pilot group, the same vote today would blow up in their faces.

I don't think the board will even allow another vote for a concession, but if they are forced to put something out there is no way it will pass. I am not saying it will be a resounding 90% against (even though it should be 100%), but there is NO WAY another vote for pay cuts will pass. The pilot group is done giving.

One way or another, we are going to an 1113. Anything more from my wallet will be taken, not given.

 

[Shrek]

I think all of you could walk away from F9 at this point (God forbid it would ever get to that ) knowing that you DID everything possible to make it survive.

 

[CitationUltra]

I know the Frontier people will despise me for this but let me ask this. Looking at all this from the perspective of someone who needs this industry to survive for the next 25-30 years, is this news about Frontier a good thing? Other carriers are laying off 1000's to reduce capacity so fares can be raised to sustainable levels, yet we are going to have another carrier go into bankruptcy, gut contracts, wipe out debt, just to stay in business and do it all over again in a few years.

Look, if my company were to go bankrupt, then they don't deserve to exist. Yes, even if it meant I were on the street. I'm a reasonably intelligent person, I can do something else. Too many weak carriers are remaining alive due to our bankruptcy laws. But I guess question remains, is the industry as a whole better off for those who remain and those who depend upon it for their living, when carriers continue to go in and out of bankruptcy? At the very least, we should have some laws that limit a company to 1 bankruptcy. If we did, USAir would no longer be around.

BUT...They have a great product...

 

[starchkr]

nice sarcasm citation...but when ya have it ya have it, can't say that about many other places out there.

As far as a vote goes for further concessions, well, they will get a hell no from me.

 

[B6Busdriver]

sounds like better deal....congrats FNT!

Press ReleaseSource: Frontier Airlines Holdings, Inc.

Frontier Airlines Receives Alternative Commitment for Debtor in Possession Financing
Monday August 4, 1:42 pm ET Republic Airways, AQR Capital and Credit Suisse Commit up to $75 million
DENVER, Aug. 4 /PRNewswire/ -- Frontier Airlines Holdings, Inc. today announced it is moving forward with an alternate transaction for post-petition debtor-in-possession (DIP) financing. Republic Airways Holdings, Inc., Credit Suisse Securities (through its affiliates), and AQR Capital (the "Lenders"), each a member of the Unsecured Creditors Committee in Frontier's Chapter 11 Bankruptcy cases, are offering Frontier up to $75 million in DIP financing, with an immediate firm commitment and funding of $30 million. This new DIP facility provides Frontier with lower financing costs, less restrictive covenants and greater flexibility to pursue strategic opportunities without being constrained by more restrictive DIP provisions. The alternate DIP facility is subject to bankruptcy court approval and to various conditions.
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The Lenders provided the Company with this improved DIP facility following Frontier's successful efforts to significantly improve its liquidity. Over the past two weeks, Frontier announced the Perseus $75 million DIP financing, up to $80 million in additional liquidity through aircraft sales to VTB Leasing for onward lease to Rossiya Airlines and other aircraft sale leaseback transactions.
"The agreement by members of our Unsecured Creditors Committee to extend this financing commitment is a tremendous vote of confidence in our Company and its business plan," said Sean Menke, Frontier President and Chief Executive Officer. "After a careful examination of this offer against the offer Perseus provided last week, we believe this new agreement offers immediate access to greater liquidity under more favorable terms."
Upon court approval, the Lenders will provide immediate funding of $30 million to support Frontier's working capital needs. The Lenders will consider funding an additional $45 million subject to the terms and conditions of the DIP Credit Agreement.
The proposed DIP funding, coupled with Frontier's recent announcements of aircraft sales and sale leasebacks, is expected to substantially increase Frontier's cash position and provide sufficient working capital for the Company's operations, as well as significant staying power in the market. These announced liquidity initiatives allow the Company to continue to execute upon its business improvements, focusing on fleet deployment, cost savings and revenue enhancements. Frontier will continue to evaluate strategic opportunities in light of this new DIP facility and the anticipated significant improvement to Frontier's balance sheet.
Frontier and its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on April 10, 2008. More information about Frontier's Chapter 11 proceedings is available at FrontierAirlines.com/restructure. Court filings and claims information are available at frontier-restructuring.com. Frontier's principal bankruptcy counsel is Davis Polk & Wardwell.
About Frontier Airlines Holdings, Inc.
Frontier Airlines Holdings, Inc. is the parent company of Denver-based Frontier Airlines. Currently in its 15th year of operations, Frontier Airlines is the second-largest jet service carrier at Denver International Airport, employing more than 5,000 aviation professionals. Frontier Airlines' mainline operation has 60 aircraft with one of the youngest Airbus fleets in North America. Frontier Airlines' mainline operations offer 24 channels of DIRECTV® service in every seatback along with a comfortable all-coach configuration. In conjunction with a fleet of ten Bombardier Q400 aircraft operated by Lynx Aviation (a subsidiary of Frontier Airlines Holdings, Inc.), Frontier offers routes to more than 50 destinations in the U.S., Mexico, Canada and Costa Rica. In November 2006, Frontier and AirTran announced a first-of-its-kind integrated marketing partnership that offers travelers the ability to reach more than 80 destinations across four countries with low fares aboard two of the youngest fleets in the industry. For more in-depth information on Frontier Airlines, please visit its Web site at FrontierAirlines.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained in this press release that are not historical facts may be forward-looking statements as that item is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could result in actual results differing materially from expected results and represent the Company's expectations and beliefs concerning future events based on information available to the Company as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release. Additional information regarding risk factors that may affect future performance at the Company are contained in the Company's SEC filings, including without limitation, the Company's Form 10-K for its fiscal year ended March 31, 2008.



Source: Frontier Airlines Holdings, Inc.

 

[StopNTSing]

Can anyone say whipsaw?

Hope it doesn't come to that, but getting in bed with Republic sounds like a great way to create a whole 'lotta internal competition for the mainline (and Lynx).

 

[Cardinal]

Hope it doesn't come to that, but getting in bed with Republic sounds like a great way to create a whole 'lotta internal competition for the mainline (and Lynx).

There's still some lonely E170s in F9 colors sitting in PIT, looking for a home.

Also, remember when Wexford kicked in some dough to keep us flying a few years back? The more things change....

Also this new Republic/AQR/Credit Suisse deal has similar requirements for labor givebacks. Stop the merry-go-round, I want off.

 

[Flying the Line]

Frontier receives first round of funding

By Chris Walsh, Rocky Mountain News (Contact)

Originally published 03:20 p.m., August 12, 2008
Updated 03:20 p.m., August 12, 2008


Frontier Airlines has received the first $30 million loan from a group of its largest unsecured creditors under a previously announced deal that could eventually lead to another $45 million in funding.
The creditors — Republic Airways, Credit Suisse, AQR Capital and CNH Partners — provided the loan to Frontier last Friday, according to documents the carrier filed today with the U.S. Securities and Exchange Commission.
Frontier, which filed for bankruptcy in April, has said it will use the money for day-to-day operations as it restructures its business. The loan carries an interest rate of between 14 percent and 16 percent, depending on how Frontier decides to pay it back.
The carrier can potentially get up to $45 million more in loans if it meets certain performance requirements and wins concessions from its unions.
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