Budget Carrier Spirit Airlines Files for Bankruptcy

Core Viewpoint - Spirit Airlines has filed for bankruptcy protection and reached a debt restructuring agreement with bondholders, while its shares have dropped over 90% this year [1][2][3]. Group 1: Bankruptcy Filing and Debt Restructuring - Spirit Airlines filed for Chapter 11 bankruptcy protection and has an agreement with bondholders to restructure its debt [2][4]. - The restructuring is expected to reduce total debt and provide increased financial flexibility, positioning the airline for long-term success [4]. - The airline will continue normal flight operations during the bankruptcy process [4]. Group 2: Financial Commitments and Support - Existing bondholders have committed to a $350 million equity investment and will equitize$795 million of funded debt [5]. - Spirit will receive $300 million in debtor-in-possession financing from bondholders, along with existing cash reserves, to support operations during bankruptcy [5]. Group 3: Operational Challenges and Previous Attempts - Spirit Airlines has faced challenges, including job cuts and selling planes to improve finances, and failed merger attempts with JetBlue Airways and Frontier Airlines [6]. - The airline's shares have seen a 3.7% increase in premarket trading but remain down over 90% year-to-date [3].