MINNEAPOLIS -- Republic Airways Holdings said Monday it is offering to buy Frontier Airlines for $108.8 million and take it out of bankruptcy.

Republic said it expects a court-supervised auction to determine if anyone will make a better offer.

Indianapolis-based Republic supplied a $40 million debtor-in-possession loan to Frontier and held a $150 million unsecured claim, so it's not a surprise that it is on track to buy the airline.

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