Republic sues F9 for 260 million.

[Mr Biggelsworth]

Apparently for breach of contract. Any truth to this???? This shiite is just getting ugly.....

 

[starchkr]

Yep, it's true, but that is not the whole story...nice try though.

We are letting them go from the contract that we had with them, and in this contract it states that if a separation of this contract were to occur then they would get the above stated amount for this time frame. Hence the suit filed with the BK judge to get the money...everything MUST go through the judge now, so in my understanding they need to "file a suit" to have the correct legal avenues covered to get the money from the contract...or at least something like that. From what i have read, it is a friendly understanding between the two operators with well wishing going on between the two.

 

[8vATE]

Proper term may be "claim" not "lawsuit?"

But what do I know...?

 

[Colonel Savage]

...everything MUST go through the judge now, so in my understanding they need to "file a suit" to have the correct legal avenues covered to get the money from the contract...

So they will become a creditor in the BK filing, and stand to get some fraction of the 260 million?

 

[StaySeated]

They are an unsecured creditor, so they will be lucky if they get anything. As with most chapt. 11 reorganizations, the unsecured creditors and common shareholders very rarely get anything. If you add up the total amount of secured creditors claims against F9 you already run out of money. Republic had to file the claim, but they realize that they will get little if any return.

 

[buyagoat]

I think that the mgmt at republic thought it would be best to move on. f9 had been asking for a reduction in flying for a while from republic. I think legally we had to file the claim, but we hope that by us leaving now they can fair better. Also republic has to try to find a home for 17 a\c now. I hope that things work out for f9 there a good airline with some great people over there.

 

[maxpayrollcruz]

F9 needs to do, whatever F9 needs to do to survive these hard times.

Good luck guys!