Game Over: Spirit Air Files Bankruptcy

byCaptain Frank Sparrow -
0
[Collection]Tyler DurdenGame Over: Spirit Air Files Bankruptcy 

Spirit Airlines entered into a restructuring support agreement with its convertible bondholders as part of a comprehensive balance sheet restructuring. This move follows a failed merger with JetBlue Airways and years of mounting losses.

In connection with the restructuring support agreement, Spirit received a $350 million equity investment from existing bondholders and will undergo a complete deleveraging transaction to equitize $795 million of funded debt. 

Spirit filed for Chapter 11 in the US Bankruptcy Court for the Southern District of New York to move forward with restructuring, listing assets and liabilities of between $1 billion and $10 billion. 

In early October, Spirit explored bankruptcy as it attempted to renegotiate $1.1 billion in debt with its credit card processor, which was due next year, or risk losing the ability to process those transactions. 

Spirit is the first major US airline to file for bankruptcy since American Airlines 13 years ago.

The onset of financial turmoil for the budget airlines came when the Biden administration blocked the Spirit-Jet Blue deal earlier this year. 

In mid-January, TD Cowen analyst Helene Becker said the failed merger would only result in bankruptcy. 

And in March. 

Spirit CEO Ted Christie told investors and travelers this AM in a statement, "The most important thing to know is that you can continue to book and fly now and in the future." 

Last week, Spirit delayed its quarterly financial results, noting progress toward an agreement to protect creditors and customers. 

In premarket trading in New York, shares of Spirit were higher by 4%, around $1.12. On the year, shares have plummeted 93% as of Friday's close. The float is 34.7% short. 

End of an era. 

Tyler Durden Mon, 11/18/2024 - 10:45Game Over: Spirit Air Files Bankruptcy 

Spirit Airlines entered into a restructuring support agreement with its convertible bondholders as part of a comprehensive balance sheet restructuring. This move follows a failed merger with JetBlue Airways and years of mounting losses.

In connection with the restructuring support agreement, Spirit received a $350 million equity investment from existing bondholders and will undergo a complete deleveraging transaction to equitize $795 million of funded debt. 

Spirit filed for Chapter 11 in the US Bankruptcy Court for the Southern District of New York to move forward with restructuring, listing assets and liabilities of between $1 billion and $10 billion. 

In early October, Spirit explored bankruptcy as it attempted to renegotiate $1.1 billion in debt with its credit card processor, which was due next year, or risk losing the ability to process those transactions. 

Spirit is the first major US airline to file for bankruptcy since American Airlines 13 years ago.

The onset of financial turmoil for the budget airlines came when the Biden administration blocked the Spirit-Jet Blue deal earlier this year. 

In mid-January, TD Cowen analyst Helene Becker said the failed merger would only result in bankruptcy. 

And in March. 

Spirit CEO Ted Christie told investors and travelers this AM in a statement, "The most important thing to know is that you can continue to book and fly now and in the future." 

Last week, Spirit delayed its quarterly financial results, noting progress toward an agreement to protect creditors and customers. 

In premarket trading in New York, shares of Spirit were higher by 4%, around $1.12. On the year, shares have plummeted 93% as of Friday's close. The float is 34.7% short. 

End of an era. 

Tyler Durden Mon, 11/18/2024 - 10:45https://www.zerohedge.com/markets/game-over-spirit-air-files-bankruptcy2024-11-18T15:45:00.000Z2024-11-18T15:45:00.000Z

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