Spirit Airlines announced Monday it has secured creditor approval for another $100 million in cash to continue operations as the company reorganizes in U.S. Bankruptcy Court.
Management disclosed in a statement that the South Florida-based budget carrier amended its debtor-in-possession agreement with creditors to access the money.
Half of the $100 million is available for immediate use. Access to the balance depends on progress toward a reorganization plan that would allow Spirit to either continue operations as an independent carrier, or enter into “a strategic transaction” with another airline.
“Spirit is currently in active negotiations on each of these possibilities,” the statement said. It did not identify the parties involved in the negotiations.
Last Friday, Spirit and the unions representing its pilots and flight attendants confirmed both labor groups ratified new agreements calling for significant cost concessions over the next two years.
Business as usual
“In the past 60 days,” the airline said Monday, “Spirit also has dramatically repositioned its fleet and improved its cost structure. The airline continues to develop its product offerings, which range from economical to premium, but in all cases are designed to offer compelling value, while never deviating from delivering a top-tier operation.”
Dave Davis, the CEO and president, said the company is “grateful to our lenders for continuing to support Spirit’s transformation, recognizing all the significant progress our team has made in recent months.”
Spirit said its “flights, ticket sales and operations continue as usual.”
The company filed its second Chapter 11 bankruptcy petition in less than a year in August amid a revenue shortage, pressure from a major aircraft lessor, and heavy competition from stronger “legacy” carriers in the industry.