Spirit Airlines expects to exit Chapter 11 within weeks after the United States Bankruptcy Court for the Southern District of New York confirmed Spirit Airlines’ financial reorganisation plan.
Under the approved plan, Spirit will cancel existing equity shares, transferring ownership to lenders and bondholders, and equitise ¢$795 million of funded debt, while also securing $350 million in new equity and $840 million in senior secured debt.
Despite objections from the Securities and Exchange Commission and the Office of the US Trustee, which expressed concerns over creditor consent and legal claims, Judge Sean Lane approved the plan, allowing creditors to opt out of certain releases.
Spirit Airlines, which filed for Chapter 11 in November 2024 due to debts of approximately $1.6 billion and a failed merger attempt with JetBlue Airways, expects to exit bankruptcy in the coming weeks while continuing to operate normally across 80 airports in 14 countries.
Ted Christie shared: “Spirit Airlines has continued to operate normally throughout the Chapter 11 process, flying to 80 airports across 14 countries. Today’s approval is a major milestone as we progress toward the successful conclusion of our in-court process. Throughout this process, we’ve had virtually unanimous support from our bondholders, who recognise Spirit’s value and potential.”
