Spirit Airlines anticipates emerging from Chapter 11 bankruptcy in the coming weeks.

SPIRIT AIRLINES A319-132 N532NK (MSN 3165)  

Spirit Airlines announced yesterday that its Plan of Reorganization was confirmed by the States Bankruptcy Court for the Southern District New York. The carrier expects to emerge from Chapter11 in the coming weeks with this approval in place.

“Today’s approval is a major milestone as we progress toward the successful conclusion of our in-court process,” said CEO Ted Christie.

“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 recognise Spirit’s value and potential.”

He added: “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.

“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 convert $795 million of funded debt into equity, receive $350 million in new equity investment, and $840 million in aggregate principal amount of new senior secured debt to existing bondholders upon emergence.

The airline will enter into a new revolving credit of up to $300 million.

Spirit vendors, aircraft lessors and holders of secured aircraft indebtedness will not be impaired. The airline continues to operate in the normal course. Guests can continue to book and fly without any fear or interruption.