INDIANAPOLIS--(BUSINESS WIRE)--Republic Airways Holdings Inc. announced that the United States Bankruptcy Court for the Southern District of New York issued its ruling approving the Company’s comprehensive amendments to its agreements with Delta Air Lines, Inc. 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.
Zirinsky Law Partners PLLC and Hughes Hubbard & Reed LLP are serving as Republic’s legal advisors in the restructuring and Norton Rose Fulbright is serving as Republic’s legal advisor in the DIP transaction. Seabury Securities LLC is serving as Republic’s financial advisor. Davis Polk & Wardwell LLP is serving as Delta’s legal advisor and PJT Partners is serving as Delta’s financial advisor.
About Republic Airways
Republic Airways Holdings Inc., based in Indianapolis, is an airline holding company that owns Republic Airline and Shuttle America Corporation, collectively called “the airlines.” The airlines offer approximately 1,000 flights daily to 105 cities in 38 states, Canada, the Caribbean, and the Bahamas through Republic’s fixed-fee codeshare agreements under our major airline partner brands of American Eagle, Delta Connection and United Express. The airlines currently employ about 5,800 aviation professionals. For more about Republic Airways, please visit our website at www.rjet.com.
Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Republic Airways Holdings' business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the summary of risk factors contained in our earnings release.
