Spirit Airlines Exits Bankruptcy Confirmed by Chapter 11 Plan
Deal News | Mar 12, 2025 | Paul Hastings
Spirit Airlines Inc. has successfully exited Chapter 11 bankruptcy as of March 12, 2025, after a substantial financial restructuring process. The restructuring involved Spirit equitizing $795 million of its funded debt, and raising an additional $350 million from new equity investments by its existing secured bondholders and convertible noteholders. Furthermore, Spirit issued $840 million in secured notes to the same prepetition bondholders and noteholders, under its confirmed Chapter 11 plan. Amid these developments, Spirit is set to relist its shares on a stock exchange to facilitate future financial operations. The process was advised by Paul Hastings LLP, with a team led by Financial Restructuring partners Matt Warren, Geoff King, and Zach Cochran, along with several other partners, counsel, and associates.
Sectors
- Aviation
- Legal Services
- Financial Restructuring
Geography
- United States – Spirit Airlines and Paul Hastings are based in the United States, where the bankruptcy proceedings took place.
Industry
- Aviation – Spirit Airlines operates in the aviation industry, providing air transportation services.
- Legal Services – Paul Hastings LLP provided legal advisory services in the Chapter 11 restructuring process for Spirit Airlines.
- Financial Restructuring – The article deals with Spirit Airlines' financial restructuring as part of its Chapter 11 bankruptcy proceedings.
Financials
- $795 million – Amount of funded debt equitized in Spirit Airlines’ financial restructuring.
- $350 million – New equity investment received from Spirit Airlines’ prepetition secured bondholders and convertible noteholders.
- $840 million – Total secured notes issued by Spirit Airlines to prepetition secured bondholders and convertible noteholders.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Spirit Airlines, Inc. | Target | Company | A major American ultra-low-cost carrier that has restructured its finances through Chapter 11 bankruptcy. |
| Paul Hastings LLP | Legal Advisor | Company | A premier law firm providing legal advisory services for Spirit Airlines' Chapter 11 restructuring. |
| Matt Warren | Partner | Person | Financial Restructuring partner at Paul Hastings leading the advisory team for Spirit Airlines. |
| Geoff King | Partner | Person | Financial Restructuring partner at Paul Hastings involved in Spirit Airlines' restructuring. |
| Zach Cochran | Partner | Person | Financial Restructuring partner at Paul Hastings involved in Spirit Airlines' restructuring. |