Judge Sean H Lane has scheduled a hearing for Spirit Airlines’ prearranged Chapter 11 restructuring plan for January 29, 2025, and allowed the airline to poll its bondholders for approval.
The restructuring plan, which includes Spirit and its Cayman Islands subsidiaries, is reportedly supported by a majority of its bondholders, minimizing the potential for conflicts at the upcoming hearing.
The US Trustee Program previously raised objection to the expedited hearing request, emphasizing the need for all parties to adequately review the complex details of the case.
Additionally, the judge authorized Spirit to engage in backstop agreements that include a USD 350m equity commitment from bondholders, while current shareholders have protested the process due to the anticipated delisting and loss of pre-Chapter 11 equity.
