Spirit Airlines Inc. announced on Monday that it has filed for bankruptcy protection as part of a restructuring agreement with bondholders aimed at reducing its debt burden and enhancing financial stability.
The agreement includes a $350 million equity investment and $300 million in debtor-in-possession financing, providing immediate liquidity to support the airline's operations during the restructuring process. The restructuring will reduce the carrier's debt by $795 million through equitization.
"This set of transactions will materially strengthen our balance sheet and position Spirit for the future while we continue executing our strategic initiatives to transform our Guest experience, providing new enhanced travel options, greater value, and increased flexibility," CEO Ted Christie said.
The company's stock added 3.70% during the premarket hours.
