✈️ Exclusive Benefits for Readers
Verified codes to save on your next trip.
the american airline Spirit Airlines announced he enters the process of Chapter 11 before the United States Bankruptcy Court.
Before going with the exact information, It is important to clarify that, a process of Chapter 11 It does not imply the closure of the airline or the closure of routes, so the airline's current flights are guaranteed, but it will never hurt to be attentive to the official information that may be generated.
Precisely, This procedure is to avoid the bankruptcy and subsequent liquidation of the airline, since in these months you will be able to renegotiate all your contractual obligations, debts, leases and more, just as it currently does GOAL that continues to fly even opening new routes.
Spirit Airlines joins the Chapter 11
Spirit Airlines, Inc. announced today that it has signed a restructuring support agreement (he "RSA") backed by a supermajority of convertible and fidelity bondholders Spirit in the terms of a comprehensive balance sheet restructuring. Restructuring expected to reduce Spirit's debt, provide greater financial flexibility, position Spirit for long-term success and accelerate investments that provide Guests with enhanced travel experiences and greater value.
In relation to the RSA, Spirit has received commitments backed by an equity investment of $350 million from existing bondholders and will complete a deleveraging transaction to convert into equity $795 millions of financed debt. To implement RSA, the Company has initiated a chapter process 11 pre-filed 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 financing («DIP»), what, together with Spirit's available cash reserves and cash provided by operations, are expected to further support the Company during the chapter process 11.
Spirit expects to continue operating its business in the normal course during this chapter process 11 preset and simplified. Passengers can continue booking and flying without interruption and can use all tickets, credits and loyalty points as normal. The process of chapter 11 itself will not affect the salaries or benefits of team members, that continue to be paid and honored for those employed by Spirit. The suppliers, Aircraft lessors and holders of debt secured by aircraft will continue to receive payments in the normal course and will not be affected.
«I am pleased to have reached an agreement with a supermajority of our convertible and fidelity bondholders on a comprehensive recapitalization of the Company, which constitutes a strong vote of confidence in Spirit and our long-term plan.", said Ted Christie, President and CEO of Spirit. "This set of transactions will materially strengthen our balance sheet and position Spirit for the future as we continue to execute our strategic initiatives to transform our guest experience.", providing new and improved travel options, Greater value and greater flexibility. I am extremely proud of the hard work and dedication of the Spirit team, which is key to our sustained progress in advancing our business and providing services to our guests.".
As part of the chapter process 11, Spirit is presenting a proposed Reorganization Plan (the "Plan") which incorporates the agreed terms of the RSA and is subject to confirmation by the Court. The company has received the support of a large majority of its convertible and loyalty bondholders and hopes to exit a simplified chapter process 11 in the first quarter of 2025.
Along with the request, Spirit has presented a series of first-day motions that, once approved by the Court, will make it even easier for the company to operate its business in the normal course during the simplified process of the chapter 11.
As a result of the presentation of the chapter 11, Spirit expects to be delisted from the New York Stock Exchange in the short term. The company expects its common stock to continue to trade over-the-counter through the chapter process 11. Shares expected to be written off and worthless as part of Spirit restructuring.
✈️ Exclusive Benefits for Readers
Search here for hotels ALL over the world at the best price.
