Overview

• Spirit negotiated a debtor-in-possession financing package of up to $475 million from existing bondholders, with $120 million already available on an interim basis.
• An additional tranche of up to $200 million is expected to be available if the U.S. Bankruptcy Court approves the financing at an Oct. 10 hearing.
• A settlement with AerCap would bring a $150 million payment to Spirit, allow rejection of 27 aircraft leases, preserve delivery of 30 future aircraft, and resolve outstanding disputes, pending court approval.
• The court approved Spirit’s move to exit 12 airport leases and 19 ground-handling agreements as part of broader cost and network rationalization.
• Spirit is shrinking its network by roughly 25% with about 40 route cuts, exiting MSP and BDL, furloughing 1,800 flight attendants and 270 pilots, and seeking about $100 million in pilot concessions to support a standalone restructuring.