Spirit Airlines secures additional $300m for post-bankruptcy purposes

January 17, 2025

In a 16 January SEC filing, Spirit Airlines disclosed that it has secured up to $300 million in financing (in the form of a senior secured revolving credit facility) from its existing debtholders, with the proceeds to be used for “working capital and other general corporate needs of the Company and its subsidiaries following emergence from the Chapter 11 cases”.
The news comes as Spirit starts to wrap up an insolvency restructuring process initiated two months ago, with the airline announcing it is to publish its 2025 May-August flight schedule later this month.
The new funding would also seem to assuage concerns that, as Spirit also disclosed in a November filing, the airline acknowledged its future was perhaps more precarious than previously indicated. With Spirit able to “give no assurances that it will be able to secure additional funds to support its operations, or if such funds are available to the company,” it revealed in November that “management believes there is substantial doubt about the Company’s ability to continue as a growing concern”.
Spirit voluntary filed for Chapter 11 restructuring in November 2024, recording losses of around $360 million in the first half of last year. It stated at the time it had reached an agreement to restructure its debt and would raise money during the bankruptcy proceedings, a process from which it expected to emerge at the beginning of 2025.