Republic Airways Holdings filed with the U.S. Bankruptcy Court a First Amended Joint Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The Plan provides for the substantive consolidation of the Debtors other than Liquidating Debtors, the reorganization and continued operation of the Consolidated Debtors, and the liquidation of the Liquidating Debtors.”
In addition, “The Plan also provides for the classification and treatment of all claims against the Debtors and the cancellation of all equity interests in RAH. Subject to the specific provisions set forth in the Plan, priority claims will be paid in full, secured claims will be unimpaired, and holders of Allowed general unsecured claims against the Consolidated Debtors, will, on account of and in full satisfaction of their claims receive either (i) cash in an amount equal to 45% of the Allowed amount of its claims, up to a maximum distribution of $225,000.00, or (ii) New Common Stock to be issued by the corporate parent – Reorganized RAH. Holders of general unsecured claims against the Liquidating Debtors, if any, and holders of equity interests in RAH, will receive no distribution. In addition, Republic Airline and Shuttle will merge and operate under Republic Airline’s air carrier certificate, to the extent that such merger and consolidation has not already occurred.”
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