Frontier Airlines Board OKs Buy-Out by Its Employees
From Times Wire Services
DENVER —
Frontier Airlines said its board of directors on Tuesday approved the terms of an employee buy-out of the carrier.
Under an agreement with four of its five unions, holders of the company’s 12.4 million outstanding shares will be paid $17 per share, or a total of about $210.8 million.
Frontier President and Chief Executive Joseph R. O’Gorman Jr. said the agreement calls for participating unions to own at least 80% of the company through an employee stock ownership plan. Non-union employees will own some 10% through a second ESOP, and management will have options to acquire about 10%. The buy-out is subject to approval by shareholders and union memberships.
