Frontier Airlines (NASDAQ: FRNT) announced Friday that the company has filed for Chapter 11 bankruptcy.
The airlines, which is based in Denver, said they filed for bankruptcy after First Data Corp., its credit card processor, said it would start withholding receipts from the sale of the airline's tickets.
Frontier issued a statement, stating that it would continue to operate regularly during the bankruptcy proceedings, offering its full schedule of flights, honoring reservations and paying employees and suppliers.
Frontier hopes to be contrary to two discount airlines, ATA Airlines and Aloha Airlines, who have halted operations after declaring that they were bankrupt in recent weeks.
Frontier joins ATA, Aloha and SkyBus as the fourth airline to filed for bankruptcy in the last month.
Frontier Airlines has debt of $500 million to $1 billion and about the same in assets, according to the Chapter 11 documents filed in bankruptcy court.
Frontier's stock ticker price has dropped 73 percent to 43 cents a share.
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