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Spirit Airlines announced that it is carrying out a new comprehensive restructuring of the airline under Chapter 11 to position the business for long-term success.
To facilitate the process, The Company has filed a voluntary petition for bankruptcy under the US Bankruptcy Court.. for the Southern District of New York.
Spirit intends to use the process of Chapter 11 to implement the extensive changes necessary for the Company to have a sustainable future and position itself to deliver the best value in the sky in the coming years. The Company has been in contact with some of its largest landlords, secured noteholders and key stakeholders in recent months, as you work to define your path forward. The process of Chapter 11 will give Spirit the tools, the time and flexibility to continue discussions with all your landlords, financial creditors and other parties to implement a financial and operational transformation of the Company.
Spirit Airlines returns to the chapter 11
The Company is filing customary motions with the Court in order to conduct its business normally during the restructuring process. Passengers can continue booking, traveling and using your tickets, credits and loyalty points. Salaries and benefits will continue to be paid and respected for those who work for the Company, including contractors. Spirit intends to pay its vendors and suppliers for goods and services provided as of the date of application submission on a regular basis..
«Since we emerged from our previous restructuring, which focused exclusively on reducing Spirit's debt and raising capital, "It has become clear that there is much more work to be done and many more tools available to best position Spirit for the future.", Dave Davis said., President and Executive Director. "After thoroughly evaluating our options and considering recent events and market pressures facing our industry, Our Board of Directors decided that a court-supervised process is the best path forward to make the necessary changes to ensure our long-term success.. We have evaluated every corner of our business and are proceeding with a comprehensive approach where we will be much more strategic about our fleet, markets and opportunities to better serve our customers, team members and other interested parties».
Through the restructuring process, The Company hopes to redouble its efforts to:
- Redesign your network: Spirit will concentrate its flights in key markets to offer more destinations, frequencies and better connectivity in its main cities. The Company will also reduce its presence in certain markets.
- Optimize your fleet size: Spirit will adjust its fleet to match capacity with profitable demand, according to the redesigned network. This will significantly reduce Spirit's debt and lease obligations and is projected to generate hundreds of millions of dollars in annual operating savings..
- Address your cost structure: Spirit will reinforce its efforts to improve its cost model, industry leader, seeking greater efficiency throughout the business.
- Compete effectively and meet changing consumer preferences with its three travel options: Spirit First, Premium Economy y Value: Spirit will make the most of its lower costs to give consumers more of what they want: value at every price point. The airline will expand opportunities for travelers to choose premium options while staying true to its original mission of making travel more accessible for everyone.
As a result of the application under the Chapter 11, It is expected that Spirit be removed from the NYSE American Stock Exchange in the short term, and the Company expects that its common shares will continue to trade in the over-the-counter market (OTC) during the Chapter process 11. Shares expected to be written off and worthless as part of Spirit restructuring.
Spirit maintains its flights normally
The most important thing is that Spirit continues to operate and offer high quality travel options. This means you can continue booking and traveling with Spirit, given that:
- Flights continue to operate normally.
- You can use tickets, credits and loyalty points.
- You can continue to benefit from our Free Spirit loyalty program, Saver$ Club benefits and credit card conditions.
- Team members remain focused on providing safe travel, with excellent service and a superior experience.
For more information about our financial restructuring, visit www.spiritrestructuring.com.
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