SPIRIT
go away

Announcement

On Nov. 18, 2024, Spirit Airlines introduced its bold new plan—Go Away!—by entering into a restructuring support agreement (the “RSA”). This revolutionary move, supported by a supermajority of Spirit’s loyalty and convertible bondholders (but notably not its shareholders), promises to achieve a comprehensive balance sheet restructuring. The restructuring is expected to dramatically reduce Spirit’s debt, increase its financial flexibility, and position Spirit for long-term success, while also accelerating investments in “enhanced travel experiences”—a phrase we assure you is not meant to be ironic.

Under the Go Away! plan, Spirit has secured backstopped commitments for a $350 million equity investment from existing bondholders, because who better to keep us airborne than the people we owe money to? The plan also includes a daring move to equitize $795 million of funded debt, which, let’s face it, is a fancy way of saying, "Shareholders, Go Away!" To implement the RSA, Spirit has kicked off a prearranged chapter 11 process in the United States Bankruptcy Court for the Southern District of New York, proving once again that we are truly committed to streamlining our struggles. Bondholders have also stepped in with $300 million in debtor-in-possession (“DIP”) financing, because hey, why stop at just one bailout?

Spirit is thrilled to announce that under the Go Away! plan, operations will continue as usual throughout the chapter 11 process. Guests can keep booking flights, redeeming credits, and using loyalty points as if nothing is happening—because, frankly, we hope they don’t notice. Team Member wages and benefits will remain unaffected, which is great news for those of us lucky enough to still have a paycheck. Vendors, aircraft lessors, and holders of secured aircraft debt will also continue to be paid, so at least someone is getting something out of this deal. Meanwhile, shareholders can simply embrace the spirit of the Go Away! plan by quietly disappearing.

To guide this exciting new phase, Spirit has partnered with Epiq Corporate Restructuring, LLC, to provide information about the chapter 11 case. Epiq will answer questions from vendors, Guests, Team Members, and other stakeholders, though we must warn you: if you're a shareholder looking for answers, the only response you'll likely hear is, "Go Away."

Court filings and other information related to the restructuring proceedings are available here.

Approval of First Day Motions: The Go Away! Plan Takes Flight

In connection with our bold new Go Away! restructuring plan, we are thrilled to announce that on November 18, Spirit Airlines received court approval for all our requested “first day” relief to kick off our prearranged, streamlined chapter 11 process. This means we can officially continue pretending everything is normal while we sort out the mess behind the scenes. Among other exciting benefits of the Go Away! plan, this approval ensures that Spirit’s Team Members, vendors, and other counterparties will keep getting paid in full, while shareholders are kindly reminded to quietly exit stage left. Guests can also continue booking flights, redeeming loyalty points, and using credits—because, let's be honest, loyalty points are now worth more than shareholder equity ever was.