Shareholders of Republic Airways flex muscle in bankruptcy
Bankruptcies usually wipe out shareholders. But stock in Republic Airways Holdings Inc. actually has risen sharply after its initial plunge when the company sought Chapter 11 in February—and a pair of aggressive hedge funds is maneuvering in bankruptcy court to push the value far, far higher.
New York-based Axar Capital Management LP and London-based Man Group PLC together spent more than $44 million to amass a 25 percent stake over the past year or more. Even with the stock rising from 20 cents to 91 cents over the past seven months, those shares are worth just $12 million.
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