Spirit on track to receive $475 million from creditors to help airline fly through bankruptcy

"The company said the "debtor-in-possession" financing is coming from existing bondholders. As part of a motion filed with the U.S. Bankruptcy Court in New York, "the Company obtained immediate interim access to $120 million," the airline said in a statement made public Tuesday afternoon. Up to $200 million "is expected to be available upon court approval" after a hearing on Oct. 10."

"The settlement with AerCap will allow Spirit to end leases on 27 Airbus jetliners, "allowing the Company to reduce operating costs by hundreds of millions of dollars." The company filed a heavily redacted notice of the AerCap deal with the court last week, but it drew an objection from the U.S. Trustee who complained the agreement was too short on details to be evaluated."

Spirit Airlines secured immediate interim access to $120 million and expects up to $200 million more upon court approval, as part of debtor-in-possession financing from existing bondholders. The carrier stands to receive an additional $150 million from AerCap under a restructuring that lets Spirit end leases on 27 Airbus jetliners, reducing operating costs by hundreds of millions of dollars. The AerCap settlement resolves claims between the parties and provides for the future delivery of 30 aircraft. The airline obtained court approval to terminate 12 airport leases and 19 ground-handling agreements. Ongoing negotiations with other lessors aim to generate new liquidity, further fleet rationalization, and significant cost savings.

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