Republic Airways Holdings Inc. (RAH) says it has agreed with Bombardier Aerospace (BBA, Montréal Trudeau) to amend a firm order agreement signed in 2010 for forty A220-300s with forty additional options. The move is part of RAH's Chapter 11 bankruptcy proceedings which have allowed it to extricate itself from several financially onerous contracts.
RAH said in an SEC filing the amendment provided for the deferral of scheduled aircraft payments to the Canadian manufacturer as well as scheduled aircraft deliveries, as previously scheduled under the Purchase Agreement.
RAH says it has already stopped making pre-delivery deposit payments on these aircraft, which were originally to have been delivered beginning in early 2015 and continuing through 2017.
In addition, RAH said it would pay Bombardier and associated firms a general unsecured claim of USD1.5 million and an administrative claim of USD0.7 million to settle certain unspecified claims filed by the Canadians against it and Republic Airlines (Indianapolis International).
The motion is scheduled to be heard by a New York State Bankruptcy Court on November 17, 2016.
