Originally Posted by
ROTORGUY
Truth. Most believe the Frontier Spirt Deal would have been approved and made sense. Am I mistaken but didn’t Frontier make an offer to buy/merge with Spirt again around the end of the Chapter 11 process? Wouldn’t it be better to merge with Frontier vs Chapter 7 which appears to me eminent? Hoping all the pilots have a soft landing somewhere. Hang in there.
No. The offer would have given them very little cash, and some shares of F9, which are pretty much worthless. Frontier's market cap is not even $1B so they were effectively going to get about $200M of F9 stock and then their debt was going to be converted to unsecured debt, which F9 could just wipe out in a future BK. The biggest problem was that the bondholders would lose control over the assets and unable to sell them etc.