Frontier Airlines files for chapter 11

Frontier Airlines Holdings announced that, following an unexpected attempt by its principal credit card processor to substantially increase a “holdback” of customer receipts, which threatened to severely impact Frontier’s liquidity, Frontier and its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Frontier intends to continue normal business operations throughout its reorganization process. Frontier’s Chapter 11 cases were filed on Friday April 11th in U.S. Bankruptcy Court for the Southern District of New York.