Spirit Airlines (NK, Fort Lauderdale International) emerged from Chapter 11 restructuring on March 12, 2025, having equitised around USD795 million of its pre-existing debt and secured USD350 million in new equity from existing investors. The ultra-low-cost-carrier completed the process in four months, in line with its expected timeline.
"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. Throughout this process, we've continued to make meaningful progress enhancing our product offerings while also focusing on returning to profitability and positioning our airline for long-term success," president and chief executive officer Ted Christie said.
The airline filed for Chapter 11 restructuring in November 2024. It already had the support of its bondholders and backstopped equity commitments then, which facilitated the quick restructuring. The reorganisation plan, which was approved by the US Bankruptcy Court on February 20, also includes a plan to issue USD840 million in fresh senior secured debt and a new USD300 million revolving credit facility.
Some of the largest bondholders of Spirit Airlines, which are now its shareholders, include Citadel Advisors, Pacific Investment Management Co. (Pimco), Western Asset Management Co., AllianceBernstein L.P., and Arena Capital Advisors, LLC. The airline cancelled all of its outstanding stock during the reorganisation and was delisted from the New York Stock Exchange in mid-December 2024.
