Low-cost carrier Spirit Airlines has completed a financial restructuring process and emerged from Chapter 11 of the US bankruptcy court with a renewed balance sheet.
The airline’s parent company announced the completion of a consensual debt reduction transaction that resulted in a significant reduction in the company’s debt. With the restructuring, Spirit converted approximately $795 million of financed debt into equity, improving its financial flexibility.
The company has also secured a $350 million investment from its existing investors, which aims to growth initiatives, including improving the enger experience.
“This process has allowed us to continue our transformation and invest in the customer experience. We are committed to redefining low-cost travel by offering new, high-value travel options,” said Ted Christie, president and CEO of Spirit Airlines.
Following the restructuring, Spirit has canceled previously issued common stock and expects to relist its shares on a recognized stock exchange as soon as practicable after the effective date of the plan of reorganization.
