A federal bankruptcy judge has approved Republic Airways Holdings Inc.’s plan of reorganization, clearing the way for the company to emerge from chapter 11 as a privately held company by the end of April, the Indianapolis Business Journal reported on Friday. The Indianapolis-based company, which flies commuter routes for larger airlines, slid into bankruptcy in February 2016. It was driven to distress by the national pilot shortage, which left it unable to fly some of its routes, and by onerous contract terms with its big-airline partners, American, Delta and United. Republic had filed its reorganization plan in November. But it drew a number of objections, which took months to work through. Judge Sean Lane granted final approval on Thursday. In the reorganization, Republic is canceling its publicly traded stock. The new owners will be creditors, which will receive new common stock in exchange for their claims.
