Republic Airways Holdings, which already has a rather substantial relationship with Midwest Airlines, will be acquiring the whole kit and caboodle, 100% of the equity (currently split 53%-47% between TPG Capital and Delta Air Line) and a $31 million secured note held by TPG, for $6 million in cash and a $25 million/5-year note, which can be converted to Republic stock for $10/share. The press release linked to also states that the rest of the Boeing 717 aircraft owned by Midwest will be replaced by smaller, but longer-ranged, Embraer 190 aircraft already operated by Republic.
The Milwaukee Journal Sentinel reports that, prior to the takeover, Republic had loaned Midwest $31 million and assumed a $4.2 million judgement against Midwest relating to non-payment of jet and jet-engine leases.
