Spirit Airlines plans to emerge from Chapter 11 in the coming weeks, having secured approval of its Plan of Reorganization from the United States Bankruptcy Court for the Southern District of New York.
“[This] approval is a major milestone as we progress toward the successful conclusion of our in-court process,” said Ted Christie, Spirit’s President and CEO in a company statement. “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’ve had virtually unanimous support from our bondholders, who recognize Spirit’s value and potential. As 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.”
Christie continued, “I’m 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.”
Under the approved Plan, Spirit will equitize $795M of funded debt, receive $350M of new equity investment and issue $840M aggregate principal amount of new senior secured debt to existing bondholders upon emergence. In addition, Spirit will enter into a new revolving credit facility of up to $300M. Spirit vendors, aircraft lessors and holders of secured aircraft indebtedness will not be impaired.
Spirit continues to operate its business in the normal course. Guests can continue to book and fly without interruption.
Spirit’s reorganization plans comes weeks after the company rejected an alternative plan submitted by Frontier Airlines to merge the two into a stronger low-cost carrier.
Additional information about the Company’s chapter 11 case, including access to Court filings and other documents related to the restructuring process, is available at dm.epiq11.com/SpiritGoForward or by calling Spirit’s restructuring information line at (888) 863-4889 (U.S. toll free) or +1 (971) 447-0326 (international). Additional information is also available at  SpiritGoForward.com.
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