Spirit Airlines has filed a prearranged Chapter 11 process in the United States Bankruptcy Court for the Southern District of New York.
Existing bondholders are also providing $300 million in debtor-in-possession financing, which, together with Spirit’s available cash reserves and cash provided by operations, should support the Company through the Chapter 11 process.
Spirit expects to continue operating normally throughout this prearranged, streamlined Chapter 11 process. Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal.
The Chapter 11 process will not impact Team Member wages or benefits, which continue to be paid and honored for those employed by Spirit. Vendors, aircraft lessors and holders of secured aircraft indebtedness will continue to be paid in the ordinary course and will not be impaired.
