DENVER—Frontier Airlines Holdings Inc., looking to emerge from bankruptcy protection, has been offered an alternative $75 million investment from three unsecured creditors.
Indianapolis-based Republic Airways Holdings Inc., Credit Suisse Securities, and Greenwich, Conn.-based AQR Capital are offering Frontier up to $75 million in debtor-in-possession financing, Frontier said today.
Frontier said that the amount includes an immediate firm commitment and funding of $30 million from the trio of investors. All are members of the unsecured creditors committee in Frontier’s Ch. 11 bankruptcy cases.
Last week, Washington-based investment firm Perseus LLC said it would provide a $75 million debtor-in-possession loan for the chance to buy almost 80 percent of the equity in Frontier.
But Frontier President and CEO Sean Menke said in a statement today: “After a careful examination of this offer against the offer Perseus provided last week, we believe this new agreement offers immediate access to greater liquidity under more favorable terms.”
