Republic Airways Reorganization Nearly Complete
The agreement still needs bankruptcy court approval.
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Republic Airways Holdings Inc. (Nasdaq: RJET) says it expects to emerge from Chapter 11 reorganization before the end of the month. A judge for the U.S. Bankruptcy Court for the Southern District of New York has approved the company’s reorganization plan.
Republic says when it does emerge from Chapter 11, it will do so as a private company and its stock will no longer trade on the Nasdaq. The company filed for reorganization in February 2016 due to revenue losses associated with the grounding of aircraft as a result of a lack of pilot resources.
"I want to thank our Associates for never wavering in their commitment to our vision and mission throughout this challenging process," said Bryan Bedford, chief executive officer of Republic Airways. "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."
The reorganization included deals reached last year with Delta Air Lines Inc. (NYSE: DAL), United Air Lines (NYSE: UAL) and American Airlines Group Inc. (Nasdaq: AAL).
Republic’s board of directors said at the time of filing for reorganization the move was in the best interest of the company and its stakeholders.