Spirit Aviation Holdings Inc. based in Dania Beach, Florida—parent company of Spirit Airlines—announced in mid-March that it has successfully emerged from its Chapter 11 bankruptcy and financial restructuring that began last November. The restructuring converted approximately $795 million of funded debt into equity and secured a $350 million equity investment from existing investors to support future initiatives aimed at enhancing the guest experience. Over the past year, the company has exerted efforts to evolve its branding from “no-frills” to “high-value,” and plans to continue these efforts as it moves past its Chapter 11 filing. Its reorganization plan received support from an overwhelming majority of the company’s investors and holders of convertible notes and was confirmed by the U.S. Bankruptcy Court for the Southern District of New York.
Ted Christie continues as president and CEO, leading the existing executive team, and the company’s board of directors has been reorganized to include six members with significant industry and financial leadership experience: Robert A. Milton, David N. Siegel, Timothy Bernlohr, Eugene I. Davis, Andrea Fischer Newman, and Radha Tilton.
“We’re pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the guest experience,” says Christie in a prepared statement. “Throughout this process, we have continued to make meaningful progress enhancing our product offerings, while also focusing on returning to profitability and positioning our airline for long-term success. Today, we’re moving forward with our strategy to redefine low-fare travel with our new, high-value travel options.”
Spirit’s initiative to rebrand as a high-value airline is exemplified with its “Just Go” offerings introduced last August. With “Just Go,” passengers can choose from four different packages: Go Big, Go Comfy, Go Savvy, and Go, that include tiered amenities, such as extra-comfortable seats, blocked middle seats, and checked baggage, among others.
Upon emergence from bankruptcy, the common stock issued by Spirit Airlines was canceled. Newly issued shares are expected to trade in the over-the-counter marketplace, with plans to relist on a stock exchange as soon as possible.
