Republic Airways Holdings Inc. (RJET) Stake Maintained by Axar Capital Management, LP
Axar Capital Management, LP recently disclosed that they own a 19.9% stake in Republic Airways Holdings Inc. (NASDAQ:RJET) in a Schedule 13D disclosure that was filed with the Securities and Exchange Commission on Thursday, September 22nd. The investor owns 10,115,000 shares of the stock valued at approximately $13,250,650. The reporting parties listed on the disclosure included Axar Capital Management, LP, Axar GP, LLC and Andrew Axelrod. The disclosure is available through EDGAR at this link.
Axar Capital Management, LP provided the following explanation of their ownership:
The Reporting Persons originally acquired the shares of Common Stock for investment in the ordinary course of business because they believed that the shares, when purchased, were undervalued and represented an attractive investment opportunity. In connection with the Issuers bankruptcy proceedings under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Proceedings”), the Reporting Persons are participating in an ad hoc committee of equity security holders (the “Ad Hoc Committee”) for the purpose of sharing legal and financial advisors in order to evaluate whether or not to take any actions deemed appropriate in order to protect the interest of the Reporting Persons as shareholders. On September 14, 2016, the Reporting Persons entered into preliminary discussions with the Issuer regarding potential terms of a plan of reorganization.
CUSIP No. 760276105SCHEDULE 13D Page 7 of 11 Pages
The Reporting Persons may determine to pursue transactions with the Issuer with other beneficial owners of the Issuers Common Stock (the “Other Beneficial Owners”), which may include former or current members of the Ad Hoc Committee. While the Reporting Persons disclaim membership in a “group”, within the meaning of Section 13(d) of the Exchange Act, the Reporting Persons may be deemed to be members of a “group”, within the meaning of Section 13(d) of the Exchange Act, with the Other Beneficial Owners. Based on information and belief, the aggregate number of shares of Common Stock beneficially owned by current members of the Ad Hoc Committee, would be 13,233,728 shares or approximately 25.97% of the Issuers Common Stock.
Other than as set forth herein, as of the date hereof, the Reporting Persons have no definitive plans or proposals with regard to any action, nor do they have any definitive agreement with any other member of the Ad Hoc Committee or any other third party with respect to any action or otherwise (other than the sharing of legal and financial advisor expenses).
Except as set forth herein, the Reporting Persons have no present plan or proposal that would relate to or result in any of the matters set forth in Item 4 of Schedule 13D. Other than as disclosed herein, the Reporting Persons have not entered into any agreement with any third party to act together for the purpose of acquiring, holding, voting or disposing of the shares of Common Stock reported herein. In addition to pursuing transactions with the Issuer with the Other Beneficial Owners, which may include former or current members of the Ad Hoc Committee, the Reporting Persons intend to review their investment in the Issuer on a continuing basis and may seek to influence or change the Issuers control, operations, business development plans, business strategy, board composition, management or directors, competitive position, capital structure or capital management policy, including, without limitation, through discussions with management, directors, other shareholders, existing or potential strategic partners, acquirers or competitors of the Issuer, industry analysts, investment and financing professionals and/or other third parties. Such matters and discussions may materially affect, and result in, the Reporting Persons modifying their investment in the equity of the Issuer, exchanging information with any of such persons pursuant to appropriate confidentiality or similar agreements or otherwise, working together with any of such persons pursuant to joint agreements or otherwise, proposing changes in the Issuers operations, governance, capitalization or strategic plans, pursuing strategic alternatives for the Issuer or in proposing or engaging in one or more other actions set forth in Item 4 of Schedule 13D. Factors that may influence the Reporting Persons actions include, but are not limited to: (i) their view regarding the Issuers operations, business strategy, prospects, financial position, strategic direction or consideration of alternative actions that would protect the interest of the Reporting Persons as shareholders or otherwise; (ii) the outcome of the discussions and actions referenced herein; (iii) price levels of the Common Stock and other securities; (iv) availability of funds; (v) subsequent developments affecting the Issuer, including developments in the Bankruptcy Proceedings; (vi) other investment and business opportunities available to the Reporting Persons; (vii) conditions in the securities and debt market; (viii) general economic and industry conditions; and (ix) other factors that the Reporting Persons may deem relevant from time to time. The Reporting Persons may in the future take such actions with respect to their investment in the Issuer as they deem appropriate, including, without limitation, to the extent legally permissible, purchasing additional shares of Common Stock or debt or claims of the Issuer or selling some or all of their shares of Common Stock, engaging in hedging or similar transactions with respect to the Common Stock and/or otherwise changing their intention with respect to any and all matters referred to in Item 4 of Schedule 13D.
CUSIP No. 760276105SCHEDULE 13D Page 8 of 11 Pages
Republic Airways Holdings Inc. (NASDAQ:RJET) remained flat at $1.31 during midday trading on Thursday. The company has a 50 day moving average price of $2.07 and a 200 day moving average price of $3.72. Republic Airways Holdings Inc. has a one year low of $0.61 and a one year high of $14.80.
Republic Airways Holdings Company Profile
Republic Airways Holdings Inc is a holding company. The Company offers scheduled passenger services through its operating air carrier subsidiaries, Shuttle America Corporation (Shuttle) and Republic Airline Inc (Republic). The Company’s subsidiaries offer scheduled passenger service on approximately 1,090 flights daily to approximately 120 cities in over 40 states and Canada under scheduled passenger service through its fixed-fee code-share agreements with United Continental Holdings, Inc (United), Delta Air Lines, Inc (Delta), and American Airlines Group, Inc (American).
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