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Spirit Airlines announced its secured an additional $100 million in emergency financing amid its ongoing second Chapter 11 bankruptcy proceedings in a news release shared on Monday (September 15).
Spirit Aviations Holdings, Inc., the airline's parent company, confirmed that the amendment will provide "for the previously agreed third funding round of an incremental $100 million to be fulfilled today," with $50 million accessible immediately, while the remaining amount "is subject to previously agreed conditions that relate to further progress on a standalone plan of reorganization or a strategic transaction."
"We are grateful to our lenders for continuing to support Spirit's transformation, recognizing all the significant progress our team has made in recent months," said Dave Davis, Spirit's President and Chief Executive Officer, in the news release. "We continue to provide high-value travel options, which benefit American consumers whether they fly with us or not, and look forward to welcoming our Guests aboard throughout this holiday season and into the future."
Spirit announced it was filing for Chapter 11 bankruptcy for a second time in a year in August and would consider all options for its future.
"The value maximizing outcome may be a merger or sale of the company; Spirit is actively working to explore all potential opportunities. The company is actively engaged in discussions with a number of interested counterparties," Spirit said in an October SEC filing via Reuters.
Union workers previously warned that Spirit's second bankruptcy would be "more difficult" than its first.
“This bankruptcy will be much more difficult than the last one and we must be prepared to act to protect our interests,” the Association of Flight Attendants said Wednesday (September 17) in a memo obtained by Reuters.
Spirit, which is the United States' largest budget carrier, has already dropped 11 cities from its route map following its decision to file for bankruptcy again in August. The airline announced plans to cease operations in airports located in Albuquerque, New Mexico; Birmingham, Alabama; Boise, Idaho; Chattanooga, Tennessee; Columbia, South Carolina; Oakland, California; Portland, Oregon; Sacramento, California; Salt Lake City; San Diego; and San Jose, California, a spokesperson confirmed to Airlinegeeks.com.
Additionally, a previously planned route to Macon, Georgia, that was set to begin in October was also suspended. Spirit listed its assets and liabilities within the range of $1 billion and $10 billion.