RJET - Republic Airways Holdings

[bizaro86]

Just that they're delisting. I suspect the excellent returns made on American Airlines shares after their bankruptcy is affecting the market here, although I haven't actually looked closely.

 

I would probably do so if there were tradeable bonds. I couldn't find anything, does anyone know if there is non-144a Republic debt out there trading?

[muscleman]

Just that they're delisting. I suspect the excellent returns made on American Airlines shares after their bankruptcy is affecting the market here, although I haven't actually looked closely.

 

I would probably do so if there were tradeable bonds. I couldn't find anything, does anyone know if there is non-144a Republic debt out there trading?

 

Where can I see their restructure plans? I can't find it under https://cases.primeclerk.com/RJET/Home-DocketInfo?DocAttribute=2538&DocAttrName=FirstDayMotions

 

I suspect that the secured debt is not guaranteed by the parent, which means if they hand over the collateral to the bank, the bank can't ask for additional money.

If this is the case, then there might be some value for equities. But where can I find the debt documents?

[muscleman]

Is anyone still tracking this?

http://www.wsj.com/articles/republic-airways-shareholders-push-for-seat-at-the-table-1459976459

 

"The shareholders, who own more than 40% of Republic’s equity, want more time to review the airline’s recently struck deal with Delta Air Lines Inc., and to have an appointed committee to handle their claims."

 

"The shareholder group is primarily made up of hedge funds, including funds managed by Axar Capital, which is run by industry titan Andrew Axelrod. Among the other Republic shareholders are Drawbridge Special Opportunities, which is backed by Fortress Investment Group, and the George Soros-backed Quantum Partners."

 

 

http://whalewisdom.com/filer/axar-capital-management-lp#/tabholdings_tab_link

 

Axar has very high turnover rates. I think they might have sold.

 

[leadingusforward]

Is anyone still tracking this?

http://www.wsj.com/articles/republic-airways-shareholders-push-for-seat-at-the-table-1459976459

 

"The shareholders, who own more than 40% of Republic’s equity, want more time to review the airline’s recently struck deal with Delta Air Lines Inc., and to have an appointed committee to handle their claims."

 

"The shareholder group is primarily made up of hedge funds, including funds managed by Axar Capital, which is run by industry titan Andrew Axelrod. Among the other Republic shareholders are Drawbridge Special Opportunities, which is backed by Fortress Investment Group, and the George Soros-backed Quantum Partners."

 

 

http://whalewisdom.com/filer/axar-capital-management-lp#/tabholdings_tab_link

 

Axar has very high turnover rates. I think they might have sold.

 

 

MM -

 

From page 8 of the 10-Q - "On April 4, 2016, the Company submitted a letter to the Office of the United States Trustee of the Southern District of New York to oppose the creation of an official committee of equity security holders. After careful consideration of the facts of the case and analysis of the requests, the United States Trustee declined to form an Official Equity Committee."

 

https://www.sec.gov/Archives/edgar/data/1159154/000115915416000197/a1stqtr10q2016.htm

 

IMHO, the risk to the equity being canceled has risen significantly without a committee to look out for its interests through bankruptcy.

[muscleman]

Is anyone still tracking this?

http://www.wsj.com/articles/republic-airways-shareholders-push-for-seat-at-the-table-1459976459

 

"The shareholders, who own more than 40% of Republic’s equity, want more time to review the airline’s recently struck deal with Delta Air Lines Inc., and to have an appointed committee to handle their claims."

 

"The shareholder group is primarily made up of hedge funds, including funds managed by Axar Capital, which is run by industry titan Andrew Axelrod. Among the other Republic shareholders are Drawbridge Special Opportunities, which is backed by Fortress Investment Group, and the George Soros-backed Quantum Partners."

 

 

http://whalewisdom.com/filer/axar-capital-management-lp#/tabholdings_tab_link

 

Axar has very high turnover rates. I think they might have sold.

 

 

MM -

 

From page 8 of the 10-Q - "On April 4, 2016, the Company submitted a letter to the Office of the United States Trustee of the Southern District of New York to oppose the creation of an official committee of equity security holders. After careful consideration of the facts of the case and analysis of the requests, the United States Trustee declined to form an Official Equity Committee."

 

https://www.sec.gov/Archives/edgar/data/1159154/000115915416000197/a1stqtr10q2016.htm

 

IMHO, the risk to the equity being canceled has risen significantly without a committee to look out for its interests through bankruptcy.

 

Thank you! Based on the latest 8-K, I was wondering with this $170 million Delta settlement, if there is any value left for equity.

https://www.sec.gov/Archives/edgar/data/1159154/000115915416000205/ex991monthlyoperatingrepor.htm

 

On page 3, it seems that Liabilities Subject to Compromise is 655.6, and remaining equity would be 339.5, about $7 a share.

 

 

On the other hand, I do agree that no equity committee is a bad sign, and the fact that the current ad hoc equity committee objecting to the $170 million settlement with Delta is also a bad sign. It seems to me that this is a very good settelment, so why object to it and make the whole chp 11 bath slower? The only thing I could think of is that the Ad hoc equity committee believes that the equity will be wiped out even with such a small settelment amount, so they want to fight it back anyway to give it a try, though based on the 8-K filing above, I can't tell why they think there is no equity value left.

 

What do you think are the possible additional claims that wipe out the remaining 339.5 million?

[leadingusforward]

MM -

 

Sorry for the delay in responding.

 

I don't have anything to add re: liabilities vs. assets.  I've just seen too many bankruptcies where management has too much free reign without an equity committee in place to protect shareholders.  Even having an equity committee is no guarantee as the previously mentioned Pinnacle Airlines bankruptcy demonstrated.  Maybe this turns out OK for shareholders, but it's too risky for me.

[muscleman]

MM -

 

Sorry for the delay in responding.

 

I don't have anything to add re: liabilities vs. assets.  I've just seen too many bankruptcies where management has too much free reign without an equity committee in place to protect shareholders.  Even having an equity committee is no guarantee as the previously mentioned Pinnacle Airlines bankruptcy demonstrated.  Maybe this turns out OK for shareholders, but it's too risky for me.

 

I studied the AA chp 11 case and found that the CEO was really pushing hard to get shareholders value.

I don't see that for the RJETQ case here.

The judge is the same one though.

[muscleman]

Stock rose 50% today on no news. Thoughts?

The only thing I could think of is that yesterday is the bar date for claims submission. Probably there are no more claims submissions, which means that equity holder may get quite a bit in the end, even though there were no equity committees?  ::)

https://cases.primeclerk.com/RJET/Home-Index