Frontier Airlines Files Chapter 11 - Blames Credit Card Processor

“Frontier Airlines this morning announced it had voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code late last night…The airline said that it had been notified by its credit card processor, First Data, that as of today they intended to start withholding 50 percent of the funds received from the sale of Frontier tickets…The airline said its decision to file resulted from “an unexpected attempt by its principal credit card processor to substantially increase a “holdback” of customer receipts, which threatened to severely impact Frontier’s liquidity.” “