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Frontier Airlines’ plan of reorganization approved by creditors

Direct News Source

02-Sep-2009 Important step toward bankruptcy emergence.

Frontier Airlines Holdings, Inc. (OTCBB: FRNTQ) today announced that its Plan of Reorganization has been approved by the necessary majority of creditors enabled to vote on the Plan.

In fact, an overwhelming majority of eligible voting creditors voted in favor of the Plan, with 92.58 percent of the voting creditors and 99.84 percent of the dollar amount of voting claims approving the Plan.

In addition, the deadline for filing objections to the Plan has now passed and only a small number of objections were filed. Frontier's legal representatives believe most are technical or procedural in nature, and Frontier should be able to consensually resolve most or all of the objections, setting the stage for a largely uncontested Confirmation Hearing.

"This has been the hallmark of our restructuring efforts," said Frontier President and CEO Sean Menke. "We have been able to completely restructure our business and reduce our costs to among the lowest in the industry. We have also developed alternative revenue streams through our branded AirFairs program, the introduction of ancillary revenues and the expansion of our network. We were able to do all of this in a cooperative manner with the constituents in our bankruptcy case, and we expect that to continue as we enter the final stage of our bankruptcy proceedings."

Frontier's Confirmation Hearing is scheduled for Thursday, Sept. 10, in the Bankruptcy Court for the Southern District of New York.