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Spirit Airlines has successfully emerged from financial restructuring, significantly reducing its debt and securing new financing for its future growth and transformation.
Spirit Aviation Holdings, Inc., the parent company of Spirit Airlines, LLC, has announced a successful emergence from its financial restructuring. The airline has reduced approximately $795 million of debt, significantly deleveraging its financial position. This strategic move equips Spirit with less debt and financial flexibility, allowing it to pave the way for long-term success.
Spirit also received a $350 million equity investment from its existing investors as part of the restructuring. This investment will support the airline’s future initiatives to enhance travel experiences and deliver greater value to its passengers. The company’s Plan of Reorganization received overwhelming support from a supermajority of the airline’s loyalty and convertible noteholders. The United States Bankruptcy Court confirmed it for the Southern District of New York.
Spirit’s leadership will remain in the hands of Ted Christie, the current President and Chief Executive Officer, along with the existing executive team. “We’re pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the Guest experience,” stated Christie. He further highlighted the company’s ongoing efforts to enhance product offerings, its focus on returning to profitability and positioning the airline for long-term success.
Spirit’s Board of Directors has been reconstituted in the wake of the restructuring. Alongside Christie, the board will now include six directors with significant industry and financial leadership experience: Robert A. Milton, David N. Siegel, Timothy Bernlohr, Eugene I. Davis, Andrea F. Newman, and Radha Tilton.
With the completion of the restructuring, Spirit Airlines, Inc.’s common stock was cancelled. The newly issued shares are now held by Spirit’s new owners and are anticipated to trade in the over-the-counter marketplace. The company aims to relist its shares on a stock exchange as soon as reasonably practicable after the Effective Date of Spirit’s Plan of Reorganization.
Davis Polk & Wardwell LLP, as restructuring counsel, Alvarez & Marsal, as restructuring advisor, and Perella Weinberg Partners LP, as investment banker, facilitated the restructuring process.
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