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Spirit Airlines (OTC:SAVEQ), Inc. (NYSE:SAVE), currently trading at $0.34 per share with a market capitalization of $448 million, has announced the adjournment of a key Chapter 11 bankruptcy case hearing originally scheduled for January 29, 2025. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, despite its current challenges. The new date for the Combined Hearing, which will address the airline's reorganization plan and related disclosure statement, is now set for February 13, 2025.
This delay follows Spirit's voluntary petitions for relief under Chapter 11, filed on November 18, 2024, for the company and its subsidiaries. Despite the bankruptcy proceedings, InvestingPro data shows Spirit maintains a current ratio of 1.3 and an Altman Z-Score of 5.56, indicating some financial stability. The proceedings are taking place in the United States Bankruptcy Court for the Southern District of New York and are being administered jointly under case number 24-11988 (SHL). For deeper insights into Spirit's financial health metrics and exclusive ProTips, consider exploring InvestingPro's comprehensive analysis tools.
As part of the restructuring process, Spirit Airlines submitted a pre-arranged Chapter 11 plan of reorganization and its accompanying disclosure statement on November 26, 2024. The Court issued a scheduling order on December 17, 2024, which approved the disclosure statement on an interim basis and authorized the solicitation of votes on the reorganization plan.
The adjournment was made in accordance with the scheduling order and was announced on January 23, 2025. The upcoming hearing is critical for the airline as it seeks to emerge from bankruptcy and implement its reorganization strategy.
Spirit Airlines began trading on the OTC Pink Market under the symbol "SAVEQ" on November 19, 2024, following the delisting of its common stock from the New York Stock Exchange. The company's financial metrics from InvestingPro show last twelve months EBITDA of $274 million and a debt-to-equity ratio of 2.13, metrics that could be crucial for investors monitoring the restructuring process.
In other recent news, Spirit Airlines has made significant strides in its financial restructuring. The company has launched a $350 million equity rights offering and secured $300 million in post-bankruptcy financing. Amid its Chapter 11 bankruptcy proceedings, Spirit Airlines has reported an event of default under its financial obligations, leading to the acceleration of its debts. Despite this, the company has successfully secured bondholder consent for amendments related to its 8.00% Senior Secured Notes due in 2025.
InvestingPro data reveals that Spirit Airlines maintains a 'GOOD' overall Financial Health Score of 2.51, with last twelve months EBITDA of $274 million. The company's financial position shows total debt of $580 million and a current ratio of 1.3. According to the same source, Spirit Airlines generated EBITDA of $273.6 million in the last twelve months.
These are recent developments as Spirit Airlines continues its restructuring efforts under Chapter 11 bankruptcy. The company has extended the deadline for its equity rights offering and has secured commitments for a senior secured revolving credit facility to bolster its financial position.
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