Spirit Airlines has filed for bankruptcy in the wake of greater competition from rival carriers and financial troubles following its scuttled merger with JetBlue Airways.
The airline filed for Chapter 11 in New York listing assets and liabilities of between $1 billion and $10 billion, according to a court document.
Spirit has been in negotiations with its creditors since a federal judge blocked a $3.8 billion acquisition by JetBlue, ruling the combination would harm cost-conscious travellers by driving up the price of airline tickets across the industry. The federal government had challenged the tie-up on antitrust grounds. Separate talks for a merger with Frontier Group Holdings also fell apart.
The airline has also been under increased pressure from larger carriers that have offered travellers more affordable tickets.
Spirit filed for bankruptcy after reaching an agreement on a broad debt restructuring with a majority of its loyalty and convertible bondholders, according to a statement.
Under the plan, existing bondholders will take control of the company, which will be delisted, after swapping $795 million of debt into equity. Bondholders have also committed to inject $350 million of fresh equity and provide $300 million of debtor-in-possession financing to support it throughout the Chapter 11 process, the company said.
The airline has struggled following the Covid-19 pandemic. Larger US carriers have increasingly used basic economy fares to lure travellers away from Spirit. The company has posted annual losses since 2020 and its stock has plummeted 93 per cent this year through November 15.
The discount carrier in recent months announced it would begin offering items like extra leg room and free checked bags in response to growing consumer demand for more upscale travel options. Spirit follows into bankruptcy budget Brazilian airline Gol Linhas Aereas Inteligentes, which in January filed for Chapter 11 in New York.
The case is Spirit Airlines, 24-11988, US Bankruptcy Court, Southern District of New York (Manhattan).
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Range: Up to 610km
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BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
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The specs
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Killing of Qassem Suleimani
The biog
Profession: Senior sports presenter and producer
Marital status: Single
Favourite book: Al Nabi by Jibran Khalil Jibran
Favourite food: Italian and Lebanese food
Favourite football player: Cristiano Ronaldo
Languages: Arabic, French, English, Portuguese and some Spanish
Website: www.liliane-tannoury.com
Killing of Qassem Suleimani
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Three tips from La Perle's performers
1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.
2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.
3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.
Major honours
ARSENAL
BARCELONA
- La Liga - 2013
- Copa del Rey - 2012
- Fifa Club World Cup - 2011
CHELSEA
- Premier League - 2015, 2017
- FA Cup - 2018
- League Cup - 2015
SPAIN
- World Cup - 2010
- European Championship - 2008, 2012
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
More from Rashmee Roshan Lall
More on Yemen's civil war
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
Killing of Qassem Suleimani
