Spirit Airlines Negotiating Potential Bankruptcy Filing
Spirit Airlines has been negotiating the conditions of a possible Chapter 11 bankruptcy filing, after the failed merger with JetBlue.
The news was first reported by WSJ, citing people familiar with the matter. The Journal added that the airline had been “exploring restructuring its balance sheet through an out-of-court transaction.” However, any potential filing “wouldn’t be imminent.”
The airline’s debt stood at $3.3 billion, with more than $1.1 billion in bonds due in under a year. Spirit’s CEO, Ted Christie, said that the airline “must consider every possible avenue available to us to find incremental revenue, cost savings, and market opportunities.”