Republic Airways Holdings also filed with the U.S. Bankruptcy Court a fifth amended Schedule 9.1 for its Second Amended Joint Plan of Reorganization. The Company’s Plan subsequently became effective, and Republic Airways Holdings emerged from Chapter 11 protection. The Court confirmed the Plan on April 20, 2017.
According to BankruptcyData’s detailed Plan Summary, “The Plan contemplates for the Debtors to obtain modified agreements from its Codeshare Partners to reflect the actual costs of its flying and allow an orderly restoration of service, reach agreements on the early return of out-of-favor aircraft (Q400 and ERJ-145) and resolve any related claims, streamline its operations by operating a single aircraft type (E170/175) under a single air carrier certificate, and secure additional liquidity to fund future operational stability and growth, including through the restructuring of its aircraft indebtedness.”
In addition, “The Valuation Analysis estimates the Consolidated Equity Value distributable to Creditors to be to be $413 million to $478 million. The midpoint of the Debtors’ Distributable Value Range is approximately $445 million. Recoveries for Creditors was calculated as follows: based on the Consolidated Equity Value estimate and an estimated pool of Unsecured Claims for the Reorganized Debtors of $1,000 million, the Valuation Analysis estimates the hypothetical recovery to the Consolidated Debtors’ Creditors to be 41 cents to 48 cents per $1 of Unsecured Claim with a midpoint of approximately 45 cents, which includes an illiquidity discount associated with emergence from chapter 11 as a private company.”
Bryan Bedford, president and C.E.O., comments, “With the work of restructuring complete, we’re ready to come out of Chapter 11 laser-focused on reclaiming our leadership position in the regional airline industry by delivering outstanding operational reliability to our major airline partners, excellent customer service to our guests on board our aircraft, and maximizing future value for all our stakeholders.” This airline holding company filed for Chapter 11 protection on February 25, 2016, listing $3.5 billion in pre-petition assets.
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