Court Green Lights Republic Airways Exit from Bankruptcy

By Paul Riegler on 21 April 2017
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DSC_0423A federal bankruptcy judge gave the go-ahead to Republic Airways Holdings’ plan of reorganization on Thursday.

The decision by Judge Sean Lane of the United States Bankruptcy Court for the Southern District of New York will allow the company to emerge from Chapter 11 as a privately held company by the end of April.

The Indianapolis-based regional airline, which flies routes for American, Delta, and United, filed for bankruptcy in February 2016, saying that a lack of pilots had hampered its ability to operate. It submitted its reorganization plan last November, drawing a number of objections at the time.

“I want to thank our associates for never wavering in their commitment to our vision and mission throughout this challenging process,” said Bryan Bedford, the company’s CEO in a statement released after the court decision. The airline will emerge from bankruptcy “laser-focused” on its core business of of operating an airline.

Under the terms of the reorganization plan, Republic will cancel its publicly traded stock. The airline’s new owners will be its creditors, who will then receive newly-issued common stock in exchange for their claims.

(Photo: Accura Media Group)

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