Spirit Airlines Engages In Bankruptcy Talks Amid Financial Struggles: Report

Spirit Airlines Inc (NYSE:SAVE) is reportedly in discussions with bondholders regarding the terms of a potential bankruptcy filing. The budget airline is exploring restructuring options following a failed merger with JetBlue Airways Corporation (NASDAQ:JBLU).

What Happened: Spirit is considering a Chapter 11 filing as it grapples with significant financial challenges. The airline is also looking into restructuring its balance sheet through an out-of-court transaction, reported The Wall Street Journal on Thursday, citing people familiar with the matter.

However, according to the report, recent discussions have primarily focused on securing an agreement with bondholders and creditors to support a bankruptcy filing.

Spirit is facing mounting pressure due to its $3.3 billion debt load, which includes over $1.1 billion in secured bonds maturing within a year. The airline must refinance or extend these notes by Oct. 21, as per its credit card processor’s deadline.

CEO Ted Christie mentioned in August that the company is in active discussions with bondholders’ advisers to address these maturities.

“Before we get into the results, I want to note that we are engaged in ...

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