Frontier Airlines Inc. is seeking court approval to sell six Airbus planes to Verulamium Finance Ltd. for $165 million after reporting a $8.8 million loss for June.
Frontier in May won court approval to sell four planes, two Airbus A318s and two Airbus A319s, to Verulamium for $106 million. In a motion Tuesday, the company seeks to terminate that deal and instead sell Verulamium six planes, all A319s.
The deal would discharge $97.7 million in debt and provide Frontier with $67.3 million in cash, the company said in court papers. Frontier is asking for an Aug. 5 hearing before U.S. Bankruptcy Judge Robert Drain in New York, and said it wants to complete the deal by as early as Aug. 15.
Frontier, which filed bankruptcy April 10, said last week it agreed to be taken over by Perseus LLC in exchange for a $100 million investment and a $75 million loan so the airline can operate while it reorganizes.
The airline operates a fleet of about 60 Airbus planes and is cutting capacity by 17 percent to offset high fuel costs. Frontier has also delayed deliveries of seven planes, scheduled for 2009, until early 2011.
In another filing with the court, Frontier said it had an $8.8 million loss for June, less than half the $22 million loss it had in May. Revenue rose to $132 million in June from May’s $120 million.
