DANIA BEACH, Fla. (CBS12) — Spirit Airlines received approval for “first-day” bankruptcy relief, ensuring all Spirit Team Members are paid, and flights continue without interruption.
The announcement comes after Spirit Airlines filed for Chapter 11 bankruptcy on November 18, due to stiffer competition from bigger carriers, and a failed attempt to sell the airline to JetBlue.
“We are pleased with the Court’s decision to grant all of this important relief, which affirms our ability to continue operating seamlessly during our streamlined restructuring process,” said Ted Christie, Spirit’s President and Chief Executive Officer.
According to Spirit Airlines, the airline has entered into a restructuring support agreement (RSA) supported by a supermajority of its bondholders.
See also: DA rules police shooting of Jammie Mitchell justified, citing self-defense
The terms of the RSA entail Spirit restructuring its balance sheet, equitizing $795 million of funded and debt, and providing $350 million of fully committed equity capital upon emergence, according to the release.
Looking forward, Christie added that Spirit Airlines will emerge stronger, and will continue to execute strategic initiatives to transform its guest experience.
The airline says it expects to emerge from its Chapter 11 process in the first quarter of 2025.
Find more ways to stay up to date with your latest local news. Sign up for our newsletter to get the day’s top headlines delivered right to your inbox. Subscribe to our YouTube channel for the biggest stories and can’t miss video.