The United States Bankruptcy Court For The Southern District Of New York Also Approves $75 Million Debtor-In-Possession Facility

The United States Bankruptcy Court for the Southern District of New York has issued a ruling approving Republic Airways Holdings' comprehensive amendments to its agreements with Delta Air Lines, Inc. in bankruptcy proceedings.

The amended agreements provide substantial and interrelated operational and economic benefits, including a consensual wind-down of the Single Class Agreement (50-seat aircraft), the full settlement of the litigation between Delta and Republic, the return of full flying of all thirty (30) E170 and E175 aircraft subject to, an increase in reimbursement rates under its Dual Class Agreement (EJET), compensation for certain slot lease agreements, modifications to the parties’ Ground Handling Agreement and an allowed unsecured prepetition claim of $170 million to Delta.

The court’s ruling also approved a Debtor-In-Possession (DIP) Credit Agreement with Delta which will provide $75 million in liquidity to Republic in support of its restructuring plan. The Company anticipates the court’s approval will become effective on May 6, 2016.

(Source: Republic Airways Holdings news release)

FMI: www.rjet.com