Republic Airways and Delta Air Lines agreement approved

Dino D'Amore
By Dino D'Amore May 4, 2016 20:19

Republic Airways and Delta Air Lines agreement approved

Republic Airways has announced that the United States Bankruptcy Court for the Southern District of New York issued its ruling approving the comprehensive amendments to its agreements with Delta Air Lines. 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 30 E170s and E175s 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. Republic anticipates the court’s approval will become effective on May 6, 2016.

Zirinsky Law Partners and Hughes Hubbard & Reed 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 is serving as Republic’s financial advisor. Davis Polk & Wardwell is serving as Delta’s legal advisor and PJT Partners is serving as Delta’s financial advisor.

Dino D'Amore
By Dino D'Amore May 4, 2016 20:19