A battle is brewing between Republic Airways Holdings Inc. and its shareholders, who want more time to review crucial bankruptcy milestones which would likely wipe out their holdings following the airliner’s exit from chapter 11 protection, the Wall Street Journal reported today. The shareholders, who own more than 40 percent 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. Republic is seeking to stop the potential action in its tracks and is asking a bankruptcy watchdog to reject the shareholders’s bid to keep the chapter 11 process on track. Republic says that there will likely be no recovery for shareholders since the airline’s financial adviser estimates it had negative equity value between $200 million and $400 million when Republic filed for bankruptcy. Republic’s financial adviser estimates the company’s restructuring will result in at least $585 million to potentially more than $1 billion in claims.
