Spirit Airlines Clears Major Hurdle in Bankruptcy Plan
by Daniel McCarthy
Photo: Ceri Breeze / Shutterstock.com
Spirit Airlines on Thursday received approval for its plan to convert $795 million in debt to equity, a major step in the airline’s effort to become a private company.
The U.S. Bankruptcy Court for the Southern District of New York approved the plan, which will allow Spirit to equitize $795 million in funded debt and receive $350 million in new equity investment through the sale of private shares. Spirit had officially filed for bankruptcy in November 2024.
Spirit said its operations will not be affected by the move and expects to emerge from bankruptcy as a private company sometime in the first quarter of 2025.
The airline has been the target of two failed acquisition attempts in the past three years. JetBlue first bid $3.8 billion for Spirit before a federal judge blocked the deal. Last month, Frontier made an offer, but Spirit rejected it in favor of bankruptcy restructuring.
Spirit President and CEO Ted Christie said that upon emerging from bankruptcy, the airline will be “stronger” and able to operate with significantly more financial flexibility.
“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,” he said.
