Source: Spirit Airlines

  • Broad Support from Supermajority of Spirit’s Loyalty and Convertible Bondholders
  • Expects to Emerge from Restructuring in the Coming Weeks Positioned for Success

Spirit Airlines, Inc. (“Spirit” or the “Company”) announced the Company’s Plan of Reorganization (“the Plan”) was confirmed by the United States Bankruptcy Court for the Southern District of New York (the “Court”). With this approval in place, the Company expects to emerge from chapter 11 in the coming weeks.

“The approval is a major milestone as we progress toward the successful conclusion of our in-court process,” said Ted Christie, Spirit’s President and Chief Executive Officer. “We will emerge as a stronger airline with the financial flexibility to continue providing Guests with enhanced travel experiences and greater value. Throughout this process, we’ve had virtually unanimous support from our bondholders, who recognize Spirit’s value and potential. As we move forward, our leadership team remains focused on reducing costs while also advancing our strategic initiatives to transform our Guest experience and position Spirit for success.”

Mr. Christie continued, “I’m especially grateful for the dedication and unwavering commitment of our entire Spirit Family, who continue their outstanding work to serve our Guests and drive our business forward.”

Under the approved Plan, Spirit will equitize $795 million of funded debt, receive $350 million of new equity investment and issue $840 million aggregate principal amount of new senior secured debt to existing bondholders upon emergence. In addition, Spirit will enter into a new revolving credit facility of up to $300 million. Spirit vendors, aircraft lessors and holders of secured aircraft indebtedness will not be impaired.

Spirit continues to operate its business in the normal course. Guests can continue to book and fly without interruption.

Additional Information

Additional information about the Company’s chapter 11 case, including access to Court filings and other documents related to the restructuring process, is available at https://dm.epiq11.com/SpiritGoForward or by calling Spirit’s restructuring information line at (888) 863-4889 (U.S. toll free) or +1 (971) 447-0326 (international). Additional information is also available at www.SpiritGoForward.com.

Advisors

Davis Polk & Wardwell LLP is serving as the Company’s restructuring counsel, Alvarez & Marsal is serving as restructuring advisor, and Perella Weinberg Partners LP is acting as investment banker.

Akin Gump Strauss Hauer & Feld LLP is acting as legal counsel and Evercore is acting as financial advisor to the ad hoc group of loyalty noteholders.

Paul Hastings LLP is acting as legal counsel and Ducera Partners LLC is acting as financial advisor to the convertible bondholders.