Spirit Airlines recovery plan approved by court; bankruptcy expected to end ‘in the coming weeks’
Spirit Airlines, citing “broad support” from a “supermajority” of its leading bondholders, said Thursday its reorganization plan has been approved by a federal bankruptcy court in New York, paving the way for its exit from Chapter 11 “in the coming weeks.”
U.S. Bankruptcy Judge Sean Lane said he would back Spirit’s restructuring plan, which gives control of the Dania Beach-based discount carrier to a bondholder group that includes Citadel Advisors, controlled by billionaire hedge fund operator Kenneth C. Griffin, Pacific Investment Management Co. and Western Asset Management Co., court records show.
“Today’s approval is a major milestone as we progress toward the successful conclusion of our in-court process,” said Ted Christie, Spirit’s president and chief executive officer in a statement. “We will emerge as a stronger airline with the financial flexibility to continue providing Guests with enhanced travel experiences and greater value. Throughout this process, we’ve had virtually unanimous support from our bondholders, who recognize Spirit’s value and potential. As we move forward, our leadership team remains focused on reducing costs while also advancing our strategic initiatives to transform our Guest experience and position Spirit for success.”