Spirit Airlines has been approved by a US court to continue operations as normal, the airline said on November 19, 2024.
The United States Bankruptcy Court for the Southern District of New York approved all of Spirit's requested “first day” relief in support of its prearranged Chapter 11 process. The airline had filed for bankruptcy earlier in the week on November 18, 2024.
The relief ensures Spirit's staff, vendors, and other counterparties will continue to be paid, as well as guests to continue booking and flying without interruption. The relief also includes customers to continue using tickets, credits, and loyalty points as normal.
“We look forward to emerging as a stronger company and continuing to execute on our strategic initiatives to transform our guest experience,” said Spirit president and CEO Ted Christie.
Spirit entered into a restructuring support agreement (RSA) supported by a supermajority of its loyalty and convertible bondholders on the terms of a comprehensive balance sheet restructuring that would equitize $795 million of funded debt and provide $350 million of fully committed equity capital upon emergence.
The company said it expects to emerge from its “streamlined” Chapter 11 process in the first quarter of 2025.