the airínea northamerican Spirit Airlines announcementó he enters the process of Capíleakage 11 before the United States Bankruptcy Court.
Before going with the informationóexact n, It is important to clarify that, a process of Capíleakage 11 does not imply the closure of the airlineínea or the closure of routes, so current airline flightsínea isán guaranteed, but never beá by más be attentive to the informationón official that can be generated.
Precisely, This procedure is to avoid bankruptcy and subsequent liquidation.ón of the aerolínea, since in these months you will be ableá renegotiate all your contractual obligations, debts, leases and más, just as it currently does GOAL that continues to fly even opening new routes.
Spirit Airlines joins the Capíleakage 11
Spirit Airlines, Inc. announcementó today that it has signed an agreement to support the restructuringón (the «RSA») backed by a supermajoríto holders of convertible and fidelity bonds Spirit in the téterms of a restructuringón integral del balance. The restructuring is expectedón reduce Spirit's debt, provide greater financial flexibility, position Spirit for the élong-term success and accelerate investments that provide HuéExpedites enhanced travel experiences and greater value.
In relationón with RSA, Spirit has received commitments backed by an investmentócapital no. $350 million from existing bondholders and completeá a transactionón deleveraging to convert into capital $795 millions of financed debt. To implement RSA, the companyñía cap process has been initiatedíleakage 11 pre-filed in the United States Bankruptcy Court for the Southern District of New York (the «Tribunal»). Existing bondholders alsoén isán providing $300 million in debtor-in-possession financingón («DIP»), what, together with Spirit's available cash reserves and cash provided by operations, are expected to supportún más to the Companyñía during the cap processíleakage 11.
Spirit expects to continue operating its business in the normal course during this cap processíleakage 11 preset and simplified. Passengers can continue booking and flying without interruptionón and they can use all the tickets, crédata and loyalty points as normal. The process of capíleakage 11 and sí not affectá the salaries or benefits of team members, what continuesúbeingándose and honorábeing used for those employed by Spirit. The suppliers, aircraft lessors and holders of debt secured by aircraft continueán receiving payments in the normal course and will not be seenán affected.
«I am pleased to have reached an agreement with a supermajoríto our convertible and fidelity bondholders on a recapitalizationóComprehensive n of the Companyñía, which constitutes a strong vote of confidence in Spirit and our long-term plan», I sayó Ted Christie, President and CEO of Spirit. «This set of transactions strengthená materially our balance sheet and positioná Spirit for the future as we continue to execute our strategic initiatives.égics to transform the experience of our guestséspedes, providing new and improved travel options, Greater value and greater flexibility. I am extremely proud of the hard work and dedicationón of the Spirit team, which is key to our sustained progress in advancing our business and performance.ón of services to our huéspedes».
As part of the cap processíleakage 11, Spirit Eastá presentando un Plan de Reorganización proposed (the «Plan») which incorporates the téagreed terms of the RSA and isá subject to confirmationóCourt No.. The company has received the support of a large majorityía of its convertible and loyalty bondholders and hopes to exit a simplified cap processíleakage 11 in the first quarter of 2025.
Along with the requestón, Spirit has presented a series of first-day motionsíto what, once approved by the Court, facilitateán aún más that the company operates its business in the normal course during the simplified process of capíleakage 11.
As a result of the presentationón of the chapteríleakage 11, Spirit expects to be delisted from the New York Stock Exchange in the short term. The company expects its common shares to continue trading on the over-the-counter market.áto trotés of the cap processíleakage 11. The shares are expected to be written off and worthless as part of the restructuring.ón of Spirit.
