Spirit Airlines to Exit Bankruptcy Under Go-Private Deal
Spirit Airlines has secured court approval to leave bankruptcy under a lender-backed take-private deal, allowing top bondholders to acquire the Florida-based discount airline for approximately $1.6 billion less than its pre-bankruptcy debt. The company's restructuring plan aims to boost its business through new premium options, including wider seats and free alcoholic beverages for passengers with certain tickets. By rejecting a takeover offer from rival Frontier Group Holdings Inc., Spirit Airlines has secured control of its future.
- This deal highlights the growing trend of private equity firms acquiring struggling airlines, potentially leading to increased consolidation in the US airline industry.
- How will the ownership structure of Spirit Airlines, now controlled by top bondholders, influence its ability to navigate the increasingly competitive low-cost carrier market?