By Daily Mail (U.S.) | Created at 2024-10-03 22:35:56 | Updated at 2024-10-18 16:31:15
2 weeks ago
Spirit Airlines is reportedly in discussions with its bondholders about the terms of a potential bankruptcy filing.
The budget airline is also exploring restructuring its balance sheets through an out-of-court transaction, but people familiar with the discussions told the Wall Street Journal that recent talks have been focused on reaching an agreement with bondholders and other creditors to support a Chapter 11 filing.
The move comes just months after JetBlue pulled out of a merger agreement, but any bankruptcy filings will not be made imminently, the Journal reports.
In the meantime, Spirit continues to struggle with losses and declining revenue amid coming maturities within its $3.3billion debt load - including more than $1.1billion of secured bonds that are due in less than a year.
It also faces an October 21 deadline from its credit card processor to refinance or extend those notes.
Spirit Airlines is reportedly planning to file for bankruptcy following its failed merger with JetBlue
This is a breaking news story and will be updated.
