Spirit Airlines has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York.
The company has managed to raise $350 million from existing creditors and will convert $795 million of existing debt into equity. It is expected to be delisted from the New York Stock Exchange and will likely become worthless.
Operations will continue, and all tickets, credits, and loyalty programs will remain valid. Employee wages and aircraft lease payments will also be made.
Spirit Airlines had announced a buyout by JetBlue Airways in July 2022, but a federal district court in Boston did not approve the acquisition, leading to the termination of the contract in March of this year. Plans to merge with Frontier Airlines are also under consideration.
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