Frontier to raise $80 million by selling convertible bonds
Preparing for growth while also coping with high fuel prices and increased competition from Southwest Airlines, Frontier Airlines plans to sell $80 million in convertible bonds to raise cash.
“You need a bigger market base if you’re going to compete effectively in Denver, and that’s something (Frontier) is going to have to continue to do,” said Ray Neidl, an airline analyst with Calyon Securities.
Southwest Airlines has started selling tickets for flights that begin Jan. 3 from Denver to Phoenix, Las Vegas and Chicago Midway.
Frontier plans to add seven new aircraft to its fleet during the next fiscal year, said spokesman Joe Hodas. The carrier netted three new aircraft during the current fiscal year, which ends March 31.
Frontier warned in a filing to the Securities and Exchange Commission that it may be unable to obtain financing for some new aircraft or may be unable to meet debt payments. Frontier also said it might create a holding company to serve as its parent company.
Frontier also warned in an SEC filing that Southwest’s introductory fares on routes from Denver “were significantly below the fares we were able to obtain prior to their arrival.”
Frontier shares fell 7.6 percent Tuesday to close at $8.21.
DENVER
Forest City sued over languishing project
The would-be developer of a sports retail and entertainment complex at Stapleton is suing the area’s master developer for $20 million, claiming breach of contract and fraud.
LS Development Enterprises sued Cleveland-based Forest City Enterprises in federal court in Denver on Tuesday.
LS is owned at least in part by developer J.B. Turbidy of Aspen. Turbidy announced plans in 1998 for a $200 million, 1.5 million-square-foot complex on a 215-acre parcel south of Interstate 70 between Havana and Yosemite streets. Turbidy’s deal to purchase the land from Denver, however, was contingent on his finding tenants and financing for the project. The property remains undeveloped.
LS blames Forest City, which became a partner in the sports development after it was named Stapleton master developer in 1999. LS says Forest City let the project languish in favor of other retail developments. A Forest City representative could not be reached for comment Tuesday.
DENVER
Man to pay $1 million for real-estate fraud
A federal judge has ordered a Denver man to pay nearly $1.1 million for his role in an alleged real-estate scheme that bilked investors of $3.3 million.
Larry M. Baker must pay $960,000 in profits he allegedly made in the scheme, as well as $124,000 in interest, according to a permanent injunction filed against him Monday by U.S. District Judge Robert Blackburn.
The Securities and Exchange Commission sued Baker and his former partner, Glen W. Hilker of Englewood, in July 2003.
The SEC alleged that Baker and Hilker collected $4.7 million from 35 investors for a Weld County development but diverted $3.3 million to themselves.
DOUGLAS COUNTY
Liberty full owner of Iberian cable firm
Liberty Global Inc. said Tuesday it has acquired an additional 50 percent stake in IPS Multicanal, giving it full ownership of a leading provider of thematic television channels in Spain and Portugal.
Liberty subsidiary Chellomedia B.V. purchased Walt Disney Television International Ventures & Business Development Group’s half of IPS, which operates seven channels that reach nearly 3.5 million subscribers on the Iberian peninsula.
DENVER
Regal director sold $1.7 million in stock
A Denver member of Regal Entertainment Group’s board of directors has sold stock worth $1.7 million since Nov. 18 – about 13 percent of his holdings, according to filings with the Securities and Exchange Commission.
Craig Slater, president of the Anschutz Investment Co., sold 85,300 shares ranging from $20.03 to $20.20, according to SEC filings. Regal’s shares have traded between $17.95 and $21.75 in the last year.
LONGMONT
Intrado shareholders demand 3 board seats
Shareholders who threatened a lawsuit against Intrado Inc. a month ago are now demanding three seats on the company’s board, according to a Securities and Exchange Commission filing Tuesday.
The three nominees are investors who have been pushing the Longmont-based 911 emergency software company to increase shareholder value. Shareholders are expected to vote on the plan some time next spring when the company holds its annual meeting, a company official said.
DENVER
Regulators sue 3 over hedge-fund losses
State regulators have sued a Parker man and two others who they say bilked investors in their hedge fund out of $2 million.
The Colorado Division of Securities filed a complaint in Denver District Court against Steven M. Donnellan of Parker; Todd M. Keizer of Grand Haven, Mich.; and Philip J. Candy, formerly of Rochester, Mich., and now residing in Phoenix.
The state alleges that the three operated Ark Capital Management Group Inc., a hedge fund that took investments of more than $2 million from 40 people. The value of the hedge fund dropped to nearly zero.
ARAPAHOE COUNTY
DexOnline touts rank as top regional site
DexOnline.com has achieved its seventh consecutive quarter as the leading Internet Yellow Pages/local search site within the 14-state region served by Dex Media, according to independent data from comScore, the company said Tuesday.
The ComScore data put DexOnline at 32 percent of all IYP/local searches in the region during the quarter that ended Sept. 30. Rounding out the top five in-region sites were Yahoo at 16.4 percent; SuperPages, 15.6 percent; Google Local, 10.6 percent; and Yellowpages.com, 5.5 percent.
BOULDER
Global Casinos notes drop in net income
Boulder-based Global Casinos, which owns Bull Durham Saloon and Casino in Black Hawk, said Tuesday it posted net income of $67,706, 2 cents a share, in the three months that ended Sept. 30. The company posted net income of $170,173, 7 cents a share, during the same period in 2004.
Global attributed the decline to an increase in debt expenses.
DENVER
Travel firm Groople announces new CEO
Groople Inc., a Denver-based group-travel booking company, announced Tuesday it has hired Michael Stacy as its new chief executive. Company founder David Loy will retain his position as president.
