Now Frontier - Part of an article from USAToday
"DENVER (AP) — Frontier Airlines
(FRNT) said it has filed for Chapter 11 bankruptcy protection, but unlike other airlines filing for bankruptcy this month, it plans to keep running while it reorganizes.
The low-fare carrier said its filing Friday came after an unexpected attempt by its principal credit card processor to start withholding significant proceeds from the sale of Frontier tickets, which threatened to hurt Frontier's liquidity.
The Chapter 11 filing in U.S. Bankruptcy Court in New York prevents the credit card processor from increasing its "holdback," Frontier CEO Sean Menke said.
"By filing for Chapter 11, we will now have the time and legal protection necessary to obtain additional financing and enhance our liquidity. Fortunately, we believe that we currently have adequate cash on hand to meet our operating needs while we take steps to further strengthen our company," Menke said in a statement."
Pete