Spirit Airlines Cleared to Exit Chapter 11 Bankruptcy

Key Points

• Spirit Airlines will exit Chapter 11 bankruptcy as a private company with a restructuring plan approved by a U.S. bankruptcy judge.
• The restructuring converts $795 million of Spirit's debt into equity and includes raising $350 million in financing through equity shares.
• Spirit rejected multiple merger bids from Frontier Airlines, choosing to proceed as a standalone carrier with reforms to its loyalty program and services.

Summary

Spirit Airlines is set to exit Chapter 11 bankruptcy as a private company, following the approval of its restructuring plan by a U.S. bankruptcy judge. The plan involves converting $795 million of debt into equity and raising $350 million through equity shares, positioning the airline to emerge stronger with enhanced financial flexibility. Despite rejecting merger bids from Frontier Airlines, Spirit plans to continue as a standalone carrier with reforms to its loyalty program and onboard services.