Originally Posted by
FriendlyPilot
The offer was ridiculous. The bondholders were supposed to remove their $3B debt claim for $400M in cash and 19% equity in Frontier. So $600M in stock and cash for a near clean slate acquisition. The bondholders knew they could get more with a liquidation so they turned it down.
The market cap of ULCC (approx 1B) is almost 10x of FLYY. so the offer was approx 200M in ULCC stock + 400M cash. literally 6x higher than the 115M value of FLYY right now
And you can plausibly claim that if this happened the ULCC stock would have been much higher right now making this math even worse....