Spirit Airlines has announced that its plan of reorganisation has been confirmed by the United States Bankruptcy Court for the Southern District of New York. With this approval, the airline expects to emerge from Chapter 11 in the coming weeks.
“Today’s approval is a major milestone as we progress toward the successful conclusion of our in-court process,” said Ted Christie, Spirit’s President and Chief Executive Officer. “We will emerge as a stronger airline with the financial flexibility to continue providing guests with enhanced travel experiences and greater value. Throughout this process, we’ve had virtually unanimous support from our bondholders, who recognise Spirit’s value and potential. As we move forward, our leadership team remains focused on reducing costs while also advancing our strategic initiatives to transform our Guest experience and position Spirit for success.”
Under the approved plan, Spirit will convert US$795 million of funded debt into equity, receive a US$350 million new equity investment, and issue US$840 million in new senior secured debt to existing bondholders upon emergence. Additionally, the airline will secure a new revolving credit facility of up to US$300 million. Spirit vendors, aircraft lessors and holders of secured aircraft debt will not be negatively affected by the restructuring.
Spirit Airlines continues to operate as usual, with no disruption to its services. Passengers can continue to book and fly with confidence as the airline moves towards financial stability and long-term success.
