Spirit Airlines has announced that it has received approval from the United States Bankruptcy Court for the Southern District of New York for all of its requested “first day” relief in support of its prearranged chapter 11 process.
Among other benefits, this relief ensures that Spirit’s Team Members, vendors and other counterparties will continue to be paid in full in the ordinary course of business and that Guests can continue to book and fly without interruption and use all tickets, credits and loyalty points as normal.
Ted Christie, Spirit’s president and chief executive officer said: “We are pleased with the Court’s decision to grant all of this important relief, which affirms our ability to continue operating seamlessly during our streamlined restructuring process.
“I want to thank our Guests, Team Members and business partners for their continued support as we position Spirit for long-term success.
“We look forward to emerging as a stronger company and continuing to execute on our strategic initiatives to transform our Guest experience.”
As previously announced, Spirit entered into a restructuring support agreement (the “RSA”) supported by a supermajority of its loyalty and convertible bondholders on the terms of a comprehensive balance sheet restructuring that would equitize $795 million of funded debt and provide $350 million of fully committed equity capital upon emergence.
The restructuring will be effectuated through a plan of reorganization that is subject to confirmation by the Court.
The Company expects to emerge from its streamlined chapter 11 process in the first quarter of 2025.
