Spirit Airlines is unlikely to escape bankruptcy

(Boursier.com) — Spirit Airlines is approaching bankruptcy. The low-cost airline is expected to file for bankruptcy protection after negotiations with Frontier Airlines failed. In a regulatory filing late Tuesday, Spirit said it is in advanced talks with an overwhelming majority of its creditors to implement a restructuring. The plan being negotiated is not expected to harm general unsecured creditors, employees, customers, vendors, suppliers or lessors of aircraft, nor the holders of its aircraft-backed secured debt, according to the statement. of society.

Spirit Airlines was close to merging with Frontier Group Holdings in 2022, the parent company of Frontier Airlines, before JetBlue Airways won the bidding. The $3.8 billion deal was nevertheless blocked by the US Department of Justice in March. Since then, Spirit has been trying to negotiate terms for a possible bankruptcy or out-of-court restructuring.

The Wall Street Journal reported earlier Tuesday that negotiations with Frontier had broken down.