Spirit Airlines was approved for debt restructuring that will see the embattled carrier convert $795 million of debt into equity.
A US bankruptcy judge granted a motion on 20FEB to allow Spirit Airlines to become a private company, which has handed over ownership of the the company to its lenders, including Pacific Investment Management Company, Citadel Advisors, and USB Asset Management.
“We will emerge as a stronger airline with the financial flexibility to continue providing guests with enhanced travel experiences with greater value,” Spirit Airlines CEO Ted Christie said in 20FEB statement.
The move comes on the heels of Spirit rejecting a bid from Frontier Group, another budget airline, on the basis that its buyout proposal wasn’t high enough.
The US Securities and Exchange Commission and the Office of the US Trustee have long opposed Spirit’s bankruptcy plan.
Despite the budget carrier’s financial difficulties, Spirit Airlines enjoys a strong reputation among travellers—and not just because passengers save significant sums of money flying.
Interestingly, loyal Spirit travellers continue to post online that, despite the lack of leg room, they continue to fly because the carrier hasn’t been hampered by plane crashes. Yellow rules.
