Spirit Airlines Exits Bankruptcy
Spirit Airlines has emerged from its financial restructuring “as a stronger company better positioned for long-term success.”
As part of this planned bankruptcy proceedings, the carrier managed to wipe out approximately $795 million in debt. Spirit also received a $350 million equity investment from existing investors to support its customer experience initiatives.
Spirit’s Plan of Reorganization was confirmed by the United States Bankruptcy Court for the Southern District of New York, with overwhelming support from a supermajority of the Company’s loyalty and convertible noteholders.
“We’re pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the Guest experience,” said Ted Christie, President and Chief Executive Officer. “Throughout this process, we’ve continued to make meaningful progress enhancing our product offerings, while also focusing on returning to profitability and positioning our airline for long-term success. Today, we’re moving forward with our strategy to redefine low-fare travel with our new, high-value travel options.”
The carrier noted in a press release while its shares will remain delisted from the New York Stock Exchange (NYSE) for now, it expects that to change “as soon as reasonably practicable after the Effective Date of Spirit’s Plan of Reorganization.”
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