Spirit Airlines has successfully emerged from Chapter 11 restructuring, highlighting a significant reduction in debt and improved financial flexibility after receiving approval from a US court for their reorganization plan. In a recent press release, the airline announced the completion of its financial restructuring through a consensual deleveraging transaction, converting approximately $795 million of funded debt into equity. This move was bolstered by a $350 million equity injection from existing investors, aimed at enhancing traveler experiences and overall value.

CEO Ted Christie expressed satisfaction with the streamlined restructuring process, emphasizing the company's strengthened financial position to fuel ongoing transformation and guest-focused investments. The reorganization plan, greenlit by the US Bankruptcy Court for the Southern District of New York on February 20, 2025, involved various elements such as equity investment, debt conversion, and issuing new secured debt to bondholders upon emergence.

Christie is set to continue leading Spirit Airlines as President and CEO, supported by the existing executive team, while a reconstituted Board of Directors comprising members with extensive industry and financial expertise will oversee the company's strategic direction. Following the financial restructuring, Spirit's common stock was eliminated, with new shares now owned by the airline's new stakeholders and expected to be traded in the over-the-counter marketplace.

Looking ahead, Spirit aims to relist its shares on a stock exchange expeditiously post the reorganization's effective date. This move underscores the airline's commitment to long-term growth and stability in the aftermath of the Chapter 11 process. Earlier in November 2024, Spirit initiated a prearranged Chapter 11 reorganization to address its debt obligations. Notably, the company opted against a merger proposal from Frontier Group on February 11, 2025, prioritizing the benefits outlined in its current restructuring strategy for shareholders.