Spirit Airlines Tumbles After Filing Second Bankruptcy in a Year
(Bloomberg) -Spirit Aviation Holdings Inc., after not being able to turn the airline with cash shortages, applied for the second time in less than a year.
In the 11th episode in New York on Friday, the carrier listed the assets and obligations between 1 billion and 10 billion dollars in the bankruptcy petition. The filing comes in the midst of active negotiations with the largest rental, guaranteed grade owners and key stakeholders.
Spirit shares decreased up to 55% after normal Sunday hours on Friday, and before it was stopped in New York at 16:30, a 46% drop to $ 0.65.
In a letter to customers, Spirit said that the bankruptcy file would not affect the operations of the airline and will have no effect on tickets or loyalty program.
The airline also said that it will ında double ”on second bankruptcy efforts to reduce operating costs, and redesign the flight network, including reducing and optimizing its presence in some markets.
Bankruptcy points to the failure of an earlier restructuring from the Spirit’s balance sheet, which reduces approximately $ 795 million debt and requires bond holders to inject additional capital into the enterprise. New funds have been used to support initiatives to attract more brochures by deviating from the naked bone fee model by offering more advantages to customers.
The carrier’s file comes a day after Bloomberg reported that Spirit has undertaken rival Frontier Group Holdings Inc. and that the carrier has mentioned his efforts to draw a forward way. Frontier and Frontier President Bill Franke pushed for years for a combination of two -cost carriers. Frontier rose to $ 19% in the postmarket process from 17:40 in New York.
While the soul came out of bankruptcy protection in March, the US Airline industry was in the midst of a sharp decline when flying by consumers related to potential trade wars and increasing inflation.
On August 11, the airline warned that he could not survive if he could not collect cash quickly enough to satisfy the creditors, and announced that he had completely touched a revolving credit line of $ 275 million about a week later.
He went to the US bank at least 50 million dollars, and that if the airline did not leave aside as a collateral, he warned that he would cancel a contract to commit customer credit card payments at the end of the year.
Spirit opened its previous bankruptcy in November to reconstruct the debt of approximately 1.6 billion dollars after losing the passengers by offering the passengers by offering cheaper basic economic fees by larger airlines.
It was also hit by a motor production defect that grounds some of the aircraft fleet and historically high labor costs under new contracts.
Airline, Jetblue Airways Corp. and Frontier was decayed by the 2022 inheritance war. The spirit finally agreed to be acquired by Jetblue with an agreement of $ 3.8 billion, but the combination was blocked by a federal judge on January 2024 on the grounds of antitröst.
(Updates with more details throughout.)
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