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F9 secures DIP financing.
Press Releases - Frontier Airlines
Perseus Also Agrees To Serve As Equity Sponsor for Frontier's Emergence from Bankruptcy DENVER, July 25 /PRNewswire/ -- Frontier Airlines Holdings, Inc. today announced it has received a $75 million commitment in post-petition debtor-in-possession (DIP) financing from Perseus LLC, a private investment firm based in Washington, D.C. with offices in Evergreen, Colorado, New York and Munich. Perseus has also agreed to serve as equity sponsor for Frontier's plan of reorganization, allowing Perseus to purchase 79.9% of the equity in the reorganized company for $100 million. The DIP facility and plan sponsorship are subject to bankruptcy court approval and to various conditions. "Today's announcement is a major boost to Frontier and builds momentum toward its emergence from bankruptcy as a viable enterprise. The $75 million commitment in DIP financing from Perseus is a significant vote of confidence in the employees of Frontier, our product and business plan," said Sean Menke, Frontier President and Chief Executive Officer. "Despite the current challenges facing the airline industry, these transactions help point the way towards Frontier's emergence from bankruptcy as a competitive, sustainable airline." |
Good news for a good group of guys and gals over at F9.
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Really glad to hear! great news!
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So now are Frontier pilots going to get that 14% or whatever concessions they gave management back? Don't hold your breath. Or what about their recent concessionary contract. Is that going to be improved? Again, I am not holding my breath.
So why are we excited that Frontier got this financing? |
Originally Posted by iahflyr
(Post 433312)
So now are Frontier pilots going to get that 14% or whatever concessions they gave management back? Don't hold your breath. Or what about their recent concessionary contract. Is that going to be improved? Again, I am not holding my breath.
So why are we excited that Frontier got this financing? |
Not only that but the loan has conditions...dont you think another round of pay cuts is in the future? I can see it now we cant get the money unless we get another 10% from the employees. Not only that but being privately held may not be that great either. Best of luck to the F9 group. You really do have a nice product.
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Originally Posted by bluebravo
(Post 433315)
$75M isn't a whole lot in the grand scheme of things. So no, they won't be getting the concession back. F9 isn't out of the woods just yet with the fall slow season coming up and SWA continuing to expand at DEN.
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Originally Posted by SomedayRJ
(Post 433322)
And didn't F9 declare bankruptcy abruptly because of this very financier holding back credit card transactions? Or am I not remembering which bank it was that did this...
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Originally Posted by bluebravo
(Post 433332)
No. They declared because of their credit card processor wanted to hold 100% of the revenue until a 6 month reserve was in the bank. With ATA and Skybus cutting services in a matter of 24 hours, the processor was eating the purchases due to Chap11/7 protection the companies had.
(This shows the genius of the financial system: "Let's hold out on paying them because others don't have to pay us!" Frontier: "TYVM, buddy", and reaches for the Chapter 11 handle.) |
Originally Posted by iahflyr
(Post 433312)
So why are we excited that Frontier got this financing?
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Originally Posted by iahflyr
(Post 433312)
So why are we excited that Frontier got this financing? Why be excited? how about the airline just got a few more months worth of oxygen. $75 mil won't save F9, but it could keep things moving until the busy holiday season. I'll tell you what, if there's an airline I want see survive this mess, Frontier would be it. |
Glad to hear , I like all the folks at SWA, but it is fair to say that they have affected the careers of many...both good and bad.
FF |
Originally Posted by FliFast
(Post 433600)
Glad to hear , I like all the folks at SWA, but it is fair to say that they have affected the careers of many...both good and bad.
FF The DINK couple down the street has four times the debt I have and their house is nicer (with new cars too). Does that make their "product" superior. Maybe on the outside but deep down they are one paycheck (and one furlough) away from financial ruin. The airline business is no different and if the airlines don't fix their business model don't blame little 'ol SWA:rolleyes:. |
Where does the nickname F9 come from?
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its their airline code
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Glad to see F9 got financing. Hopefully, this cash infusion and lower oil prices will make a difference. Good luck.
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"Perseus has also agreed to serve as equity sponsor for Frontier's plan of reorganization, allowing Perseus to purchase 79.9% of the equity in the reorganized company for $100 million."
Does anyone else find that concerning? Does that mean Perseus will essentially own or control Frontier when the dust settles? Can anyone weigh in on that? S.B. |
Originally Posted by Sr. Barco
(Post 433694)
"Perseus has also agreed to serve as equity sponsor for Frontier's plan of reorganization, allowing Perseus to purchase 79.9% of the equity in the reorganized company for $100 million."
Does anyone else find that concerning? Does that mean Perseus will essentially own or control Frontier when the dust settles? Can anyone weigh in on that? S.B. Ummm - yeah that is what that means....... |
It also means the company is only worth approximately $125 million dollars (nearly half of what it was worth prior to entering bankruptcy). I think Frontier is a sinking ship. Those paycuts the pilots took will not help it out one bit. All it does is mean these pilots will have less money when Frontier does go out of business. It is very sad.
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80% of the stock = control of the board of directors. Anyone know if they automatically have majority status on the Board immediately?
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Originally Posted by Sr. Barco
(Post 433694)
"Perseus has also agreed to serve as equity sponsor for Frontier's plan of reorganization, allowing Perseus to purchase 79.9% of the equity in the reorganized company for $100 million."
Does anyone else find that concerning? Does that mean Perseus will essentially own or control Frontier when the dust settles? Can anyone weigh in on that? S.B. |
Originally Posted by iahflyr
(Post 433713)
It also means the company is only worth approximately $125 million dollars (nearly half of what it was worth prior to entering bankruptcy). I think Frontier is a sinking ship. Those paycuts the pilots took will not help it out one bit. All it does is mean these pilots will have less money when Frontier does go out of business. It is very sad.
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The only way Frontier will make it is if the people of Colorado decide to fly on Frontier even though SWA is offering a cheaper ticket (to most places). Most people will take the cheaper flight regardless, and now that some guy is on the picture box telling the people of Denver not to book with Frontier for the holidays because Frontier might not be around, it may be too late.
I, personally, think that Frontier has a superior product over SWA. I like the planes, the people, and bring back my friggin' bread sticks already! I'm not SWA bashing- Y'all got this aviation biz figured out. Congrats for that. |
flew on them today. awesome product and the crew was friendly. also i overheard ppl talking about f9 and how much they love it. really do hope they pull through
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Come on F9, you can pull through!
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Can someone explain how this whole credit processer thing works. Seems UAL was having issues with them as well as of late.
Anyone know how that whole thing works in simple english? Does the company have to have a certain amount in reserve or are the fees outrageous? Just curious. |
Originally Posted by 328dud e
(Post 433865)
Can someone explain how this whole credit processer thing works. Seems UAL was having issues with them as well as of late.
Anyone know how that whole thing works in simple english? Does the company have to have a certain amount in reserve or are the fees outrageous? Just curious. 328dude, In a nutshell, F9 doesnt charge your credit card, a credit processor does and sends the money to F9 minus a fee to do business. Well let's say F9 goes out of business tomorrow, and refuses to give a refund. All those customers start to dispute the charge on their CC's, hence the hold F9's credit processor put on them. If i remember correctly, they held 100% (!) of their revenue from tickets for i believe three monthes to place in the bank so if F9 does tank, they won't be screwed out of their piece of the pie. Make sense? BB from the iphone |
Originally Posted by 328dude
(Post 433865)
Can someone explain how this whole credit processer thing works. Seems UAL was having issues with them as well as of late.
Anyone know how that whole thing works in simple english? Does the company have to have a certain amount in reserve or are the fees outrageous? Just curious. |
Originally Posted by Shrek
(Post 433969)
What issues were those?! They REDUCED the amount they hold back......extra 350 million bucks to UAL's liquidity.
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Originally Posted by bluebravo
(Post 433977)
Frontier had to enter Chapter 11 BECAUSE of the processors withholding 100% of it's revenue until a bank of X amount was reached. THATS a big issue to me!
Thread drift for sure, but he suggested that UAL was having troubles with their credit processor as well. I am keenly aware that this was not the case in the F9 filing. It was a major cause. |
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