F9 secures DIP financing.
07-25-2008, 05:22 PM
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F9 secures DIP financing.
Press Releases - Frontier Airlines
Good to hear for the Frontier guys, but I hope there is more to come.
Perseus Also Agrees To Serve As Equity Sponsor for Frontier's Emergence from Bankruptcy
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.
"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."
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.
"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."
07-25-2008, 06:36 PM
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So now are Frontier pilots going to get that 14% or whatever concessions they gave management back? Don't hold your breath. Or what about their recent concessionary contract. Is that going to be improved? Again, I am not holding my breath.
So why are we excited that Frontier got this financing?
So why are we excited that Frontier got this financing?
07-25-2008, 06:49 PM
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So now are Frontier pilots going to get that 14% or whatever concessions they gave management back? Don't hold your breath. Or what about their recent concessionary contract. Is that going to be improved? Again, I am not holding my breath.
So why are we excited that Frontier got this financing?
So why are we excited that Frontier got this financing?
07-25-2008, 06:56 PM
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Not only that but the loan has conditions...dont you think another round of pay cuts is in the future? I can see it now we cant get the money unless we get another 10% from the employees. Not only that but being privately held may not be that great either. Best of luck to the F9 group. You really do have a nice product.
07-25-2008, 06:59 PM
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And didn't F9 declare bankruptcy abruptly because of this very financier holding back credit card transactions? Or am I not remembering which bank it was that did this...
07-25-2008, 07:10 PM
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No. They declared because of their credit card processor wanted to hold 100% of the revenue until a 6 month reserve was in the bank. With ATA and Skybus cutting services in a matter of 24 hours, the processor was eating the purchases due to Chap11/7 protection the companies had.
07-25-2008, 07:38 PM
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No. They declared because of their credit card processor wanted to hold 100% of the revenue until a 6 month reserve was in the bank. With ATA and Skybus cutting services in a matter of 24 hours, the processor was eating the purchases due to Chap11/7 protection the companies had.
(This shows the genius of the financial system: "Let's hold out on paying them because others don't have to pay us!" Frontier: "TYVM, buddy", and reaches for the Chapter 11 handle.)
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