DENVER (AP) -- Frontier Airlines Holdings Inc. says Republic Airways Holdings Inc. has committed to provide it with $40 million in debtor-in-possession financing, subject to bankruptcy court approval.
Frontier CEO Sean Menke said Thursday that the funding would be used to refinance an existing DIP loan that matures in April and preserve the Denver-based airline's financial stability as it works to emerge from bankruptcy later this year.
As a condition of the loan, Frontier has agreed to allow Indianapolis-based Republic a stipulated damage claim of $150 million.
Frontier filed for Chapter 11 bankruptcy protection last April and received $30 million in DIP funding from Republic and others in August. The company expects to retire that debt by the end of March.