Spirit Airlines files for bankruptcy under creditor-backed restructuring
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Spirit Airlines has filed for bankruptcy protection with a restructuring plan supported by bondholders. The plan includes $300 million in financing and aims to reduce debt, with an expected exit from bankruptcy early next year.
November 18, 2024 | 12:00 pm
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Spirit Airlines has filed for bankruptcy protection under a restructuring plan supported by bondholders, which includes $300 million in financing to reduce debt.
The bankruptcy filing indicates financial distress, which typically negatively impacts stock prices. However, the bondholder-backed plan and financing provide a structured path to reduce debt and exit bankruptcy, which may mitigate some negative sentiment.
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