Spirit Aviation Holdings and five affiliated companies have filed for protection under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York.
Flight operations will continue, and customers can keep using travel credits and loyalty points. Wages will continue to be paid to employees, and the company will make ordinary-course payments for goods and services provided after the petition date to business partners. It expects to be delisted from the New York Stock Exchange (NYSE), and its shares will ultimately be canceled and rendered worthless.
Although the company had been pursuing a business restructuring through debt reorganization and strengthening of equity capital, it says it faced numerous challenges. It will continue discussions with stakeholders, including lessors and secured noteholders, and will optimize its network and fleet while recalibrating its strategy. By focusing on service to core markets and reducing fleet size, it expects to cut costs by several hundred million U.S. dollars annually.
Spirit Aviation Holdings is the parent company of Spirit Airlines. The entities included in the filing are these two companies plus Spirit Finance Cayman 1, Spirit Finance Cayman 2, Spirit IP Cayman, and Spirit Loyalty Cayman.
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