Spirit Airlines completes financial restructuring, poised for growth

Published 12/03/2025, 21:48
© Reuters.

Investing.com -- Spirit Aviation Holdings, Inc., the parent company of Spirit Airlines (OTC:SAVEQ), LLC, announced today that it has successfully completed its financial restructuring. The company’s restructuring process included a consensual transaction that converted around $795 million of funded debt into equity, significantly reducing the company’s overall debt burden.

As part of the restructuring, Spirit also received a $350 million equity investment from its existing investors. This funding will be used to support the airline’s future initiatives, which include enhancing the travel experiences of its guests and offering greater value. The United States Bankruptcy Court for the Southern District of New York confirmed Spirit’s Plan of Reorganization, with a supermajority of the company’s loyalty and convertible noteholders expressing their overwhelming support.

Spirit will continue its operations under the leadership of Ted Christie, the President and Chief Executive Officer, along with the existing executive team. "We’re pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the Guest experience," said Mr. Christie.

The restructuring process also resulted in a reconstituted Board of Directors for Spirit. Alongside Mr. Christie, the board will now include six directors with significant industry and financial leadership experience: Robert A. Milton, David N. Siegel, Timothy Bernlohr, Eugene I. Davis, Andrea Fischer Newman, and Radha Tilton.

As a part of the restructuring, the common stock issued by Spirit Airlines, Inc. was cancelled. The newly issued shares, now held by Spirit’s new owners, are expected to be traded in the over-the-counter marketplace. The company plans to re-list its shares on a stock exchange as soon as reasonably practicable after the effective date of Spirit’s Plan of Reorganization.

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