Spirit Airlines enters restructuring support agreement, commences Chapter 11 process

Spirit Airlines entered (18-Nov-2024) a restructuring support agreement (RSA) supported by a supermajority of loyalty and convertible bondholders on the terms of a comprehensive balance sheet restructuring. The RSA is expected to reduce the company's debt, provide increased financial flexibility and accelerate investments in the traveller experience. To implement the RSA, Spirit has commenced a prearranged Chapter 11 process with the US Bankruptcy Court for the Southern District of New York. Spirit bondholders are also providing USD300 million in debtor-in-possession (DIP) financing. Together with Spirit's available cash reserves and cash generated by operations, the financing is set to support the company during the Chapter 11 process. As a result of the Chapter 11 filing, Spirit expects to be delisted from the New York Stock Exchange in the near term future. The carrier expects to continue its business as normal throughout the chapter 11 process, with guests able to book and fly with Spirit without interruption. Spirit CEO Ted Christie stated: "This set of transactions will materially strengthen our balance sheet and position Spirit for the future while we continue executing on our strategic initiatives". [more - original PR]