Four Cayman Islands-based subsidiaries of Spirit Airlines (NK, Fort Lauderdale International) have filed for Chapter 11 restructuring and subsequently asked the US Bankruptcy Court for the Southern District of New York to join their cases with that of their parent company.
Spirit Finance Cayman 1, Ltd., Spirit Finance Cayman 2 Ltd., Spirit IP Cayman Ltd., and Spirit Loyalty Cayman Ltd. began their respective restructuring processes on November 25. The development was expected after Spirit Airlines revealed on November 18 that the Caymanese companies would also file for Chapter 11 protection.
In their filing, the Caymanese companies asked to apply the existing court orders in the Spirit Airlines case to themselves and subsequently waive or consider as fulfilled certain procedural requirements regarding the initiation of a new Chapter 11 case.
The subsidiaries were incorporated in 2020 as part of the capital raise at that time. Spirit Airlines used the Caymanese companies to raise USD850 million in senior secured notes priced at 8%, secured against its loyalty and intellectual property assets. The notes are due in 2025. The Caymenese companies have no other creditors.