Ultra-low-cost carrier Spirit Airlines has successfully exited Chapter 11 restructuring, having gained “significantly less debt and greater financial flexibility” after a United States court approved its reorganization plan.
In a statement released on March 12, 2025, the airline said it has completed its financial restructuring, which involved “a consensual, deleveraging transaction that equitizes approximately $795 million of funded debt.”
As part of the restructuring, Spirit also secured a $350 million equity investment from existing investors in order to provide travelers with “enhanced travel experiences and greater value.”
“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,” said Spirit’s CEO Ted Christie.
On February 20, 2025, the US Bankruptcy Court for the Southern District of New York approved the airline’s reorganization plan. The plan included converting $795 million of funded debt into equity, receiving $350 million of new equity investment and issuing $840 million in new senior secured debt to existing bondholders upon emergence.
Spirit said Christie will continue to lead the airline as President and CEO, along with its existing executive team. However, the airline added it will have a “reconstituted Board of Directors,” which will consist of six members with “significant industry and financial leadership experience.”
Upon emerging from financial restructuring, the common stock issued by Spirit Airlines was canceled, the airline added. The new shares, now held by Spirit’s new owners, are expected to be traded in the over-the-counter marketplace, the statement continued.
The company said it plans to re-list its shares on a stock exchange “as soon as reasonably practicable” after the effective date of reorganization.
On November 18, 2024, Spirit announced it had entered a prearranged Chapter 11 reorganization bankruptcy so it could set out plans to reduce its debt. As part of the process, Spirit revealed that its bondholders would commit to a $350 million equity investment, plus $300 million in debtor in possession (DIP) financing.
On February 11, 2025, Spirit Airlines said it had rejected Frontier Group’s second merger offer, stating that it is less beneficial to shareholders than the airline’s current restructuring plan.