Following on from filing for Chapter 11 Bankruptcy, Spirit Airline’s Plan of Reorganisation has been confirmed by the United States Bankruptcy Court for the Southern District of New York.
The approval sets the airline on track to emerge from bankruptcy protection within the next few weeks. Upon emergence, Spirit will equitise USD 795 million of funded debt, receive USD 350 million of new equity investment, and issue USD 840 million aggregate principal amount of new senior secured debt to existing bondholders. The airline will also enter a revolving credit facility of up to USD 300 million.
“We will emerge as a stronger airline with the financial flexibility to continue providing guests with enhanced travel experiences and greater value,” said Ted Christie, President and Chief Executive Officer of Spirit Airlines. “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.”
Throughout this process, Spirit has and will continue to operate flights as usual, with no impact on travellers, vendors, and aircraft lessors.
Photo: Spirit Airlines
