SPIRIT
go forward

Announcement

On Nov. 18, 2024, Spirit Airlines announced that it entered into a restructuring support agreement (the “RSA”) supported by a supermajority of Spirit’s loyalty and convertible bondholders on the terms of a comprehensive balance sheet restructuring. The restructuring is expected to reduce Spirit’s debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments providing Guests with enhanced travel experiences and greater value.

In connection with the RSA, Spirit has received backstopped commitments for a $350 million equity investment from existing bondholders and will complete a deleveraging transaction to equitize $795 million of funded debt. To implement the RSA, the Company has commenced a prearranged chapter 11 process in the United States Bankruptcy Court for the Southern District of New York (the “Court”). Existing bondholders are also providing $300 million in debtor-in-possession (“DIP”) financing, which together with Spirit’s available cash reserves and cash provided by operations, is expected to further support the Company through the chapter 11 process.

Spirit expects to continue operating its business in the normal course throughout the prearranged, streamlined chapter 11 process. Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal. The chapter 11 process itself should not impact Team Member wages or benefits, which are continuing to be paid and honored for those employed by Spirit Airlines. Vendors, aircraft lessors and holders of secured aircraft indebtedness will continue to be paid in the ordinary course and will not be impaired by the chapter 11 filing.

Spirit has engaged a claims agent, Epiq Corporate Restructuring, LLC, to provide information regarding our chapter 11 case, including court documents, claims and other information and to help answer questions from our vendors, Guests, Team Members and other stakeholders.

Court filings and other information related to the restructuring proceedings are available here.

Approval of First Day Motions

In connection with our restructuring, we are pleased to announce that on November 18, Spirit Airlines received court approval for all our requested “first day” relief in support of our prearranged, streamlined chapter 11 process. Among other benefits, this relief ensures that Spirit’s Team Members, vendors and other counterparties will continue to be paid in full in the ordinary course of business and that Guests can continue to book and fly without interruption and use all tickets, credits and loyalty points as normal.