Overview
- The carrier is in preliminary discussions with Castlelake about a potential acquisition that could provide a path out of Chapter 11, with no terms disclosed and no assurances a deal will be reached.
- Any transaction would require bondholder support, as recent financing released $50 million in December and tied further funding to progress on either a sale or a standalone reorganization.
- Spirit has cut flights, reduced its fleet and staff, and secured roughly $100 million in pilot and flight attendant concessions while continuing normal operations.
- Talks with Frontier did not produce a merger, and Castlelake—an aviation-focused investor with about $33 billion under management and a new $1.8 billion lending platform—has emerged as a leading counterparty.
- At a court hearing this week, Spirit’s counsel described a leaner airline after recent restructuring, while the pilots’ union urged creditors to release more funding to avoid liquidation.