{"id":101442,"date":"2025-02-21T12:15:38","date_gmt":"2025-02-21T12:15:38","guid":{"rendered":"https:\/\/peraltafinancing.com\/aerospace\/spirit-to-exit-chapter-11-within-weeks-as-court-backs-plan\/"},"modified":"2025-02-21T12:15:38","modified_gmt":"2025-02-21T12:15:38","slug":"spirit-to-exit-chapter-11-within-weeks-as-court-backs-plan","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=101442","title":{"rendered":"Spirit to exit Chapter 11 \u2018within weeks\u2019 as court backs plan"},"content":{"rendered":"


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Ultra-low-cost carrier Spirit Airlines has announced that it expects to emerge from Chapter 11 reorganization bankruptcy \u201cwithin weeks\u201d after a US court approved its recovery plan.\u00a0\u00a0<\/p>\n

On February 20, 2025, the Bankruptcy Court for the Southern District of New York said that Spirit\u2019s reorganization plan had been \u201cconfirmed\u201d in its entirety and that the \u201cburden of proving the satisfaction of the requirements\u201d had been met.\u00a0\u00a0<\/p>\n

Spirit\u2019s President and CEO, Ted Christie, said: \u201cToday\u2019s approval is a major milestone as we progress toward the successful conclusion of our in-court process. We will emerge as a stronger airline with the financial flexibility to continue providing Guests with enhanced travel experiences and greater value. Throughout this process, we\u2019ve had virtually unanimous support from our bondholders, who recognize Spirit\u2019s value and potential.\u201d\u00a0<\/p>\n

Christie added: \u201cAs 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. I\u2019m especially grateful for the dedication and unwavering commitment of our entire Spirit Family, who continue their outstanding work to serve our Guests and drive our business forward.\u201d\u00a0\u00a0\u00a0<\/p>\n

Under the approved plan, Spirit<\/a> will equitize $795 million of funded debt, receive $350 million of new equity investment and issue $840 million aggregate principal amount of new senior secured debt to existing bondholders upon emergence.\u00a0\u00a0<\/p>\n

In addition, Spirit will enter into a new revolving credit facility of up to $300 million. Spirit vendors, aircraft lessors and holders of secured aircraft indebtedness will not be affected.\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n