Spirit Airlines Faces Delisting from NYSE; Launches Consent Solicitation for 2025 Notes Amendments

Spirit Airlines Inc. (NYSE: SAVE) recently received notification from NYSE Regulation that the company’s common stock is set to be delisted from the New York Stock Exchange (“NYSE”). Following the delisting, trading in the Common Stock was immediately suspended. The delisting is expected to become effective ten days after the Form 25 is filed by NYSE Regulation. The Common Stock is anticipated to begin trading on the OTC Pink Market under the symbol “SAVEQ”.

In response to these developments, Spirit Airlines has launched a consent solicitation concerning its 8.00% Senior Secured Notes due 2025 (the “2025 Notes”). The Consent Solicitation aims to remove specific bankruptcy remote provisions from the agreements governing the 2025 Notes, including various agreements involving the Co-Issuers, Guarantors, and the Trustee. The company is also seeking consent to enable necessary actions for potential bankruptcy filings under Chapter 11.

As of now, over 78.6% of the outstanding principal amount of the 2025 Notes have been supported via a Restructuring Support Agreement signed by beneficial owners. Upon the completion of the Consent Solicitation, the Co-Issuers and related parties are expected to move forward with potential chapter 11 cases.

However, Spirit Airlines cautions stakeholders regarding forward-looking statements included in this Current Report, emphasizing risks and uncertainties surrounding the bankruptcy process and the company’s ability to navigate Chapter 11 proceedings successfully. Factors such as court approvals, operating capital availability during Chapter 11, and potential impacts on stakeholders are highlighted as areas of concern.

The information shared in the report regarding Item 7.01 on the Consent Solicitation aims to provide insights into the company’s strategic actions amidst the impending changes. Spirit Airlines underscores the importance of ongoing risk assessments and regulatory compliance as it prepares to navigate potential restructuring proceedings.

The company also provided cautionary statements concerning forward-looking statements contained in the report, emphasizing the inherently uncertain nature of such projections and the need to acknowledge external variables that could impact future results.

Investors and stakeholders are advised to review the full report and consider the potential implications of Spirit Airlines’ actions in the wake of the pending delisting from NYSE. Further updates on the company’s restructuring efforts and potential Chapter 11 filings are awaited, shedding light on the airline’s path forward in light of recent developments.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Spirit Airlines’s 8K filing here.

About Spirit Airlines

Spirit Airlines, Inc provides airline services. The company also offers hotels and rental cars services. It serves 93 destinations in 15 countries in the United States, Latin America, and the Caribbean. As of December 31, 2023, the company operated a fleet of 205 Airbus single-aisle aircraft. The company was formerly known as Clippert Trucking Company and changed its name to Spirit Airlines, Inc in 1992.