Republic Airways Holdings filed with the U.S. Bankruptcy Court Second Amended Joint Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, the section on Class 2(a) (Reinstated Aircraft Secured Claims) is amended to add the following: “Under the Plan and based on the Debtors’ estimate of Allowed General Unsecured Claims, American will receive a distribution representing approximately 25% of the New Common Stock, Delta will receive a distribution representing approximately 17.35% of the New Common Stock, and United will receive a distribution representing approximately 19.16% of the New Common Stock (and American, Delta and United will collectively receive distributions representing approximately 61.51% of the New Common Stock). Additionally, certain other claimants, including affiliates of Embraer S.A. and GE Capital Aviation Services LLC are each expected to receive a distribution representing more than 5% of the New Common Stock.”
Court-filed documents continue, “Given the concentrated holdings of the New Common Stock upon emergence from chapter 11, a few of the large holders of New Common Stock, were they to act as a group, could control the outcome of certain actions requiring stockholder approval, including the election of directors, or block actions requiring majority or supermajority consent.”
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