Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Republic Airways files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: March 31, 2016
Key Contacts
Back
Republic Airways files Chapter 11
Republic Airways Holdings Inc., one of the largest U.S. regional carriers, announced that it had filed for Chapter 11 bankruptcy protection, according to The Wall Street Journal. The company, which holds partnerships with United Airlines, American Airlines and Delta Air Lines, stated in bankruptcy documents that it had fallen under pressure due to pilot shortages and a change in market demand as consumers found cheaper flights with major airlines.
Republic Airways spirals into debt
In its initial bankruptcy filings, Republic Airways cited a collapse in oil prices for its lost revenues. According to The Journal, larger U.S. airlines have generated record profits, which prompted these companies to reduce costs in partnerships with regional carriers. Following a five-year period of financial turbulence where it purchased Midwest Airlines and Frontier Airlines to expand its business, the company became insolvent with a significant drop in demand for regional carriers.
As a result of this precipitous drop in revenues, Republic Airways struggled with a pilot shortage because it could no longer offer competitive salaries. In turn, this led to a lawsuit by Delta Air Lines in which the airline claimed damages due to loss of service.
The company listed $3.56 billion in assets with $2.98 billion in debt in its court filings. Following the news of its bankruptcy petition, Republic Airways’ share price fell by 77 percent to 78 cents.
The restructuring plan
Republic Airways has been in negotiation with its senior creditors and airline partners for close to a year. As it has failed to reach an agreement with key stakeholders and creditors, Republic Airways negotiated a deal with Delta Air Lines to stay the outstanding lawsuit.
Currently, the company plans to maintain operations and pay employees throughout the bankruptcy process.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
For related articles on airlines dealing with bankruptcy, check out:
- American Airlines’ $388M Bankruptcy Price Tag Approved
- Creditors Try to Force Evergreen International Airlines into Involuntary Chapter 7 Liquidation
- American Airlines Merger Becomes Official
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.