Spirit Airlines Achieves Critical Court Approval for Reorganization Plan Post-Bankruptcy

Spirit Airlines' Major Milestone in Bankruptcy Recovery

Spirit Airlines, Inc. has reached a significant turning point in its restructuring journey. The company announced that its Plan of Reorganization has been confirmed by the United States Bankruptcy Court for the Southern District of New York. This approval is pivotal as it paves the way for Spirit to emerge from Chapter 11 bankruptcy protection in the coming weeks, better positioned for future success.

In a statement, Ted Christie, Spirit's President and CEO, underscored the importance of this approval, calling it a milestone that will lead the airline toward a stronger operational framework. Christie expressed gratitude for the unwavering support from bondholders, indicating their recognition of Spirit's potential and value. He emphasized that the leadership team is focused on cost reduction while enhancing the overall guest experience.

Under the confirmed Plan, Spirit Airlines will streamline its debt structure significantly. The airline will equitize approximately $795 million of its funded debt and secure a new equity investment totaling around $350 million. Furthermore, it will generate $840 million in new senior secured debt which will be made available to existing bondholders upon its emergence from bankruptcy. The company also plans to establish a new revolving credit facility of up to $300 million. Importantly, the plan ensures that Spirit's vendors, aircraft lessors, and secured aircraft debt holders will not experience any impairments, which is crucial for maintaining its operational integrity during this transition.

Despite the financial turmoil that led to this restructuring, Spirit Airlines continues to operate normally. Customers can book flights and travel without disruption, reflecting the company’s commitment to delivering uninterrupted service. This stability is essential as Spirit gears up for its post-bankruptcy revival.

For those looking for detailed information on Spirit's chapter 11 case, including access to court filings and other relevant documents, the airline has made resources available through its dedicated website, as well as a restructuring information line for direct inquiries.

In conjunction with this transition, Spirit Airlines has engaged multiple advisory firms to guide its restructuring process. Legal counsel is provided by Davis Polk & Wardwell LLP, while Alvarez & Marsal serves as restructuring advisor. Perella Weinberg Partners LP is on board as the company's investment banker, alongside Akin Gump Strauss Hauer & Feld LLP offering counsel for the ad hoc group of loyalty noteholders. Paul Hastings LLP and Ducera Partners LLC also play vital roles representing convertible bondholders.

Spirit Airlines prides itself on being a leader in the low-fare market, providing value through its flexible and cost-effective travel options. The airline, which operates one of the youngest and most fuel-efficient fleets in the U.S., is dedicated to enhancing the travel experience for its customers. In addition to business recoveries, Spirit aims to foster positive community changes through the Spirit Charitable Foundation.

This recent approval not only marks an end to a turbulent chapter but also sets a hopeful tone for Spirit Airlines’ future. The company aims to leverage its improved financial structure to enhance customer experiences and make a lasting impact in the aviation industry.

As Spirit Airlines prepares to emerge from bankruptcy, stakeholders and customers alike are eager to witness the innovative changes and improvements that lie ahead for this leading low-cost carrier.