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Spirit in Talks With Castlelake on Potential Takeover as It Seeks Path Out of Bankruptcy

The outreach signals a push for new backing following a failed merger bid that coincided with engine-related groundings.

Overview

  • CNBC reports Spirit is discussing a possible takeover with Castlelake, with no agreement in place and no public comment from the parties.
  • Spirit remains in Chapter 11 after an August filing, pursuing either a standalone reorganization or a strategic transaction per its December update.
  • An amended creditor deal delivered $50 million in immediate funding in mid-December, with additional support contingent on demonstrable progress.
  • Labor groups granted about $100 million in concessions as Spirit cut flights, reduced its fleet and eliminated jobs to conserve cash.
  • Castlelake has deep aviation financing experience and last summer launched Merit AirFinance with roughly $1.8 billion to deploy, while recent talks with Frontier did not yield a merger and a federal judge blocked JetBlue’s bid two years ago.