Spirit Airlines has emerged from Chapter 11 financial restructuring, substantially deleveraged, and with new financing to support their return to profitability and drive long-term success.
On Wednesday (March 12, 2025), Spirit Airlines announced that they have exited Chapter 11 Bankruptcy reorganization better positioned to advance the company’s transformation and return to profitability. As part of the restructuring, Spirit has completed a consensual, deleveraging transaction that equitizes approximately $795 million in funded debt. With substantially less debt and greater financial flexibility, Spirit emerges stronger, and better positioned for long-term success. Additionally, the company has received a $350 million equity investment from existing investors to support the carrier’s future initiatives, including investments to provide guests with enhanced travel experiences ands greater value. Spirit will continue to be led by Ted Christie, President and CEO, along with the existing executive team.
In Wednesday’s announcement, Spirit Airlines’ President and Chief Executive Officer, Ted Christie, said,
“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. Today, we’re moving forward with our strategy to redefine low-fare travel with our new, high-value travel options.
“I’m incredibly proud of our Team Members for their continued dedication to our Guests and each other throughout this process. Despite the challenges we’ve faced as an organization, we’re emerging as a stronger and more focused airline. On behalf of the executive team, I would also like to thank our outgoing board members for their contributions and invaluable service to our airline.”
Spirit emerges reorganization with a reconstituted Board of Directors, which now includes Ted Christie, Robert A. Milton, David N. Siegel, Timothy Bernlohr, Eugene I. Davis, Andrea Fischer Newman, and Radha Tilton. Upon emergence from Chapter 11 proceedings, Spirit’s common stock was cancelled. Newly issued shares now held by Spirit’s new owners are expected to trade in the OTC marketplace. Spirit expects to re-list their shares on a stock exchange as soon as reasonably practicable.
Source: Spirit Airlines