Official bankruptcy filing documents or press release from Spirit Airlines

Spirit Airlines ($SAVE) Prepares Bankruptcy as Shares Plunge 65% After Failed Merger

Nov 13, 2024, 12:28 AM

Spirit Airlines is preparing to file for bankruptcy protection after merger talks with Frontier Airlines collapsed. The budget carrier is negotiating with its creditors to restructure its $2.5 billion debt load, which could result in the cancellation of existing equity and render current shares worthless. Spirit has filed an SEC Form 12b-25 and continues to explore strategic alternatives to improve liquidity. The company's stock, traded under the ticker $SAVE, plummeted after the news, dropping as much as 65% in after-hours trading. Earlier this year, Spirit's attempts to merge with JetBlue Airways were blocked by the U.S. Department of Justice, citing antitrust concerns. The airline is in active discussions with holders of its senior secured notes due 2025 and convertible senior notes due 2026. If a definitive agreement with noteholders is not reached, the company will consider all alternatives. Negotiations have remained productive and are advancing materially in the near term.