Spirit Airlines Soars Out of Bankruptcy, Says Will Cancel Old Stock And Expects To Re-List 'As Soon As Reasonably Practicable'

Spirit Aviation Holdings, Inc. (OTC:SAVEQ), the parent company of Spirit Airlines, LLC (OTC:SAVEQ) announced that it has successfully completed its financial restructuring.

What Happened: The United States Bankruptcy Court for the Southern District of New York has confirmed Spirit’s Plan of Reorganization, with a supermajority of the company’s loyalty and convertible noteholders offering immense support, stated the company via press release. The restructuring process allowed the company to reduce its funded debt by nearly $795 million, leaving Spirit in a robust financial position. The company also secured a $350 million equity investment from current investors, aimed at supporting future initiatives and enhancing guest experiences.

Upon emergence, the common stock previously issued by Spirit Airlines, Inc. was canceled. The company said that it “expects to re-list its shares on a stock exchange as soon as reasonably practicable” after the Effective Date of its Plan of Reorganization.

President and CEO Ted Christie stated, “Today, we’re moving forward with our strategy to redefine low-fare travel with our new, high-value travel options.”

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Why It Matters: This development comes after Spirit Airlines rejected a merger offer from Frontier Group Holdings (NASDAQ:ULCC) earlier in February 2025. Frontier had proposed a revised restructuring plan, offering Spirit’s stakeholders $400 million in second-lien debt and 19% of Frontier’s common equity. This would have eliminated the need for Spirit’s $350 million equity rights offering but required a waiver of a $35 million termination fee.

The rejection of this offer indicated Spirit’s confidence in its own restructuring plan, which it has now successfully implemented. The company’s decision to deleverage debt and secure equity investment underscores its commitment to financial stability and enhanced passenger services. The successful restructuring also paves the way for Spirit’s potential re-listing on a stock exchange, marking a significant turnaround for the airline. 

Price Action: Spirit Airlines OTC stock ended Thursday 2.6% higher at $0.47, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.