Spirit Aviation Holdings, Inc. SAVEQ, the guardian firm of Spirit Airways, LLC SAVEQ introduced that it has efficiently accomplished its monetary restructuring.
What Occurred: The United States Chapter Court docket for the Southern District of New York has confirmed Spirit’s Plan of Reorganization, with a supermajority of the corporate’s loyalty and convertible noteholders providing immense help, said the corporate through press launch. The restructuring course of allowed the corporate to scale back its funded debt by almost $795 million, leaving Spirit in a sturdy monetary place. The corporate additionally secured a $350 million fairness funding from present buyers, aimed toward supporting future initiatives and enhancing visitor experiences.
Upon emergence, the widespread inventory beforehand issued by Spirit Airways, Inc. was canceled. The corporate stated that it “expects to re-list its shares on a inventory trade as quickly as fairly practicable” after the Efficient Date of its Plan of Reorganization.
President and CEO Ted Christie said, “At the moment, we’re shifting ahead with our technique to redefine low-fare journey with our new, high-value journey choices.”
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Why It Issues: This growth comes after Spirit Airways rejected a merger provide from Frontier Group Holdings ULCC earlier in February 2025. Frontier had proposed a revised restructuring plan, providing Spirit’s stakeholders $400 million in second-lien debt and 19% of Frontier’s widespread fairness. This might have eradicated the necessity for Spirit’s $350 million fairness rights providing however required a waiver of a $35 million termination price.
The rejection of this provide indicated Spirit’s confidence in its personal restructuring plan, which it has now efficiently carried out. The corporate’s resolution to deleverage debt and safe fairness funding underscores its dedication to monetary stability and enhanced passenger companies. The profitable restructuring additionally paves the best way for Spirit’s potential re-listing on a inventory trade, marking a big turnaround for the airline.
Value Motion: Spirit Airways OTC inventory ended Thursday 2.6% greater at $0.47, based on knowledge from Benzinga Professional.
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