Republic Airways Holdings Inc. (NASDAQ: RJET) said that it and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code.
The petitions were filed in the US Bankruptcy Court for the Southern District of New York.
Republic´s board of directors unanimously determined that a Chapter 11 reorganization is in the best interest of the company and its stakeholders. The process allows Republic and its subsidiaries to continue normal business operations while restructuring the company´s finances and contractual relationships.
In connection with the filing, the company has named Lars Arnell to the role of senior vice president and chief restructuring officer. In his new position, Arnell will be responsible for all restructuring activities at the airline and its subsidiaries during the pendency of the Chapter 11 proceeding. Arnell´s duties include implementing procedures and processes designed to immediately improve the core business as well as cohesive strategies aimed at ensuring the long-term success of Republic. Arnell was previously Republic´s senior vice president of corporate development. The appointment is effective immediately.
Zirinsky Law Partners PLLC and Hughes Hubbard & Reed LLP are serving as Republic´s legal advisors in the restructuring. Seabury Group LLC is serving as financial advisor.
Republic Airways Holdings Inc., based in Indianapolis, is an airline holding company that owns Republic Airline and Shuttle America Corporation.