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Republic Airways Files For Chapter 11 Bankruptcy, Shares Lose 75%

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Republic Airways Holdings Inc. (NASDAQ: RJET) announced after Thursday's market close that the company and some of its subsidiaries have filed for Chapter 11 bankruptcy.

Shares of Republic Airways lost nearly 75 percent of its value and sank to $0.90 during Friday's pre-market session.

Republic Airways noted that its Board of Directors unanimously determined that a bankruptcy filing is in the best interest of the company and stakeholders. The company will continue operating its business while restructuring its finances and contractual relationships as it has sufficient assets and liquidity to meet its working capital and operating expenses needs.

"We worked hard to avoid this step," said Bryan Bedford, Republic's chairman, president and chief executive officer. "Over the last several months, we've attempted to restructure the obligations on our out-of-favor aircraft – made so by a nationwide pilot shortage – and to increase our revenues. It's become clear that this process has reached an impasse and that any further delay would unnecessarily waste valuable resources of the enterprise. Our filing today is a result of our loss of revenue during the past several quarters associated with grounding aircraft due to a lack of pilot resources, combined with the reality that our negotiating effort with key stakeholders shows no apparent prospect of a near term resolution."

Posted-In: airlines bankruptcy Bryan Bedford Chapter 11 Bankruptcy republic airwaysNews Legal Movers

 

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