Spirit Airways filed for Chapter 11 Chapter on Monday earlier than Thanksgiving week.
The airliner is making an attempt to restructure its debt after a failed merger with JetBlue earlier this yr.
The corporate mentioned operations will proceed as regular as Individuals put together to journey for the Thanksgiving vacation.
BREAKING: Spirit, the most important U.S. funds airline, mentioned that it has filed for chapter safety and can try to reboot because it struggles to recuperate from the pandemic-caused swoon in journey and a failed try to promote the airline to JetBlue. https://t.co/bmymUh2bnk
— The Related Press (@AP) November 18, 2024
NBC Information reported:
Spirit Airways mentioned Monday it has filed for Chapter 11 chapter safety after fighting losses, rising debt and a failed merger throughout the post-pandemic journey lull.
The corporate mentioned in a inventory market assertion that it had secured a prearranged take care of bondholders that features $300 million in financing to maintain it afloat, with the enterprise planning to finish its chapter within the first quarter of 2025.
Ticket gross sales and all different operations will proceed as regular, the corporate mentioned within the assertion, which comes simply 10 days earlier than file numbers of vacationers are anticipated to take to the skies over Thanksgiving.
“I’m happy we now have reached an settlement with a supermajority of each our loyalty and convertible bondholders on a complete recapitalization of the Firm, which is a robust vote of confidence in Spirit and our long-term plan,” Spirit CEO and president Ted Christie mentioned in a press release.
“A very powerful factor to know is you can proceed to e book and fly now and sooner or later,” Christie mentioned in a letter to clients.