Spirit Airlines has declined Frontier Airlines’ merger proposal, stating it would continue with its restructuring amid ongoing Chapter 11 bankruptcy reorganisation.
Frontier’s revised offer, presented on February 4, valued at approximately USD2.16bn, included USD400m in debt and 19pc equity, which Spirit found less favorable for its shareholders.
Spirit countered with a proposal that matched the economic value of Frontier’s offer but included mechanisms for equity distribution and removed the equity rights offering, demanding the USD35m termination fee be covered by Frontier.
The United States Bankruptcy Court for the Southern District of New York is scheduled to review Spirit’s reorganization plan on February 13, following a history of merger attempts including a previous bid process in 2022 involving JetBlue Airways.
