Following approval from the U.S. Bankruptcy Court for the Southern District of New York, Spirit Airlines—which is undergoing Chapter 11 restructuring—has secured $475 million in financing from its existing bondholders to maintain ongoing operations. Of the total financing, $200 million is immediately available.
In addition to the $475 million infusion, the airline has reached an agreement with Irish aviation company AerCap, its largest aircraft lessor, that includes a $150 million payment from AerCap to Spirit, the termination of 27 aircraft leases and the settlement of all outstanding claims between the two parties. The deal is expected to streamline operations, significantly reduce costs, and secure the future delivery of 30 aircraft.
In a statement, Spirit says, it “continues to make progress with other lessors as it pursues its fleet optimization strategy.”
“We are pleased to have reached another significant milestone in our restructuring, which represents continued progress toward securing a successful future for Spirit,” said Dave Davis, President and Chief Executive Officer, in a media statement. “With these approvals in place, we are better equipped to build a stronger airline that delivers unmatched value to American consumers. We thank our stakeholders for their support and the Spirit team for their dedication and resilience during this process.”
Spirit Airlines maintains a dedicated website about its restructuring process at spiritrestructuring.com.
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