Where does it mention WFC did this?Originally posted by: dmcowen674
Bolded for youOriginally posted by: LegendKiller
Where in that article did it say that Wells forced them into bankruptcy?Originally posted by: dmcowen674
This is one of the banks I said would fail well back last January 2007.
Wells Fargo is getting more desperate by the day.
4-11-2008 Wells Fargo forces Frontier to file for bankruptcy protection
DENVER - Frontier Airlines sought bankruptcy protection Friday, the fourth carrier to do so in the past several weeks as exorbitant fuel prices eat into earnings and a weak U.S. economy keeps more people grounded.
The Chapter 11 filing in U.S. Bankruptcy Court in New York prevents the credit card processor from increasing its "holdback," Frontier CEO Sean Menke said.
"Unfortunately, our principal credit card processor very recently and unexpectedly informed us that, beginning on April 11, it intended to start withholding significant proceeds received from the sale of Frontier tickets," he said. "This change in established practices would have represented a material change to our cash forecasts and business plan. Unchecked, it would have put severe restraints on Frontier's liquidity and would have made it impossible for us to continue normal operations."
He said Frontier Holdings Inc. was prepared to litigate, if necessary.
The creditor listed in bankruptcy court documents as having the largest general unsecured claim against Frontier by far was Wells Fargo, with $93.5 million. Frontier said it had fewer than 50 creditors.
At the end of last year, Frontier said, it had assets of $98.3 million and debts of $92.2 million.
A Frontier spokesman said earlier this week the airline had "no concerns about bankruptcy" but added that it was working on strengthening its cash position.
Last month, Frontier said it had agreed to sell four planes to counter rising fuel costs.
Frontier shares lost most of their value in premarket trading Friday, tumbling $1.27 to 30 cents each.