Spirit Airlines Gets Court Approval for Reorganization Plan
Spirit Airlines, Inc. has secured court confirmation of its Plan of Reorganization, marking a crucial step toward emerging from Chapter 11 bankruptcy. The United States Bankruptcy Court for the Southern District of New York approved the plan, allowing the airline to proceed with its restructuring and position itself for long-term success. Spirit expects to complete the process within the coming weeks.
Ted Christie, Spirit's President and CEO, emphasized the significance of this milestone, stating, "Today's approval is a major milestone as we progress toward the successful conclusion of our in-court process. We will emerge as a stronger airline with the financial flexibility to continue providing Guests with enhanced travel experiences and greater value." He also highlighted the near-unanimous support from the company’s bondholders, which underscores confidence in Spirit’s future.
As part of the approved plan, Spirit will convert $795 million of funded debt into equity, secure a $350 million new equity investment, and issue $840 million in new senior secured debt to its existing bondholders. Additionally, the airline will enter into a new revolving credit facility of up to $300 million. Notably, vendors, aircraft lessors, and secured aircraft debt holders will not face any impairments under the restructuring.
Christie expressed gratitude for the dedication of Spirit’s employees, recognizing their role in maintaining operations and ensuring continued service for travelers. “I’m especially grateful for the dedication and unwavering commitment of our entire Spirit Family, who continue their outstanding work to serve our Guests and drive our business forward," he said.
Spirit Airlines assured customers that its operations remain unaffected by the restructuring. The airline continues to operate flights as scheduled, and passengers can book and travel without disruptions. With a reinforced financial foundation, Spirit is now focused on advancing its strategic initiatives to enhance the travel experience and solidify its market position.
