This morning Frontier Airlines announced that it has received a $75 million debtor-in-possession (DIP) financing commitment from Perseus, LCC, a private investment firm based in Washington, D.C.

Perseus has also agreed to act as equity sponsor for Frontier’s plan of reorganization, allowing Perseus to purchase 79.9% of the equity in the reorganized company for $100 million.

Frontier filed a motion today with the U.S. Bankruptcy Court for the Southern District of New York. Upon court approval, Perseus will provide funding under the proposed DIP credit facility in two installments to support the company’s working capital needs.

“The proposed DIP funding, coupled with Frontier’s negotiations with partners to improve liquidity, reduce expenses, and preserve cash, is expected to provide sufficient working capital for the Company’s operations. The Company continues to work with its partners and employees to obtain additional liquidity, reduce expenses and enhance revenues,” the airline’s release said.

Okay, so are we taking bets on how long it will be before Southwest Airlines announces a quadrupling of its service out of Denver?

As for the infusion of capital on the part of Perseus, I have to kind of wonder ….why? You would almost think maybe there was another shoe to drop — that there was another airline involved at some level.

Maybe there is, but we just don’t know it yet.

But given the airline’s current position in the Denver market, and the fact that Southwest has clearly determined that they are going to take the Denver market away from Frontier — I’m not sure why a third party investor would be interested in making a bet like this — at this time.

Then again, this is the airline industry, and as one analyst said not too long ago, “The airline industry’s ability to find new sources of equity never ceases to amaze me.”

Amen to that.