Spirit Airlines, Inc.

Spirit Airlines is in chapter 11 on a prearranged restructuring path built around an RSA with major secured and convertible noteholder groups, with the available case context showing no later plan, confirmation, sale, or exit-order milestone beyond the petition-stage record. The airline commenced the lead case on November 18, 2024, after a period marked by COVID-era disruption, market oversupply and competition, the failed JetBlue merger following a January 2024 federal-court block, and Pratt & Whitney engine issues that constrained operations even as Spirit negotiated expected 2024 credits; CFO Fred Cromer’s first-day declaration framed the case as a balance-sheet restructuring intended to preserve normal airline operations while reducing funded debt and raising exit capital through stakeholder-backed transactions Cromer First Day Declaration [Dkt. 2].

The capital structure entering the case was the central problem. The declaration describes roughly $3.6 billion of aggregate debt, including $2.9 billion secured and $700 million unsecured, against a business with a 213-aircraft Airbus A320-family fleet, substantial lease obligations, and more than 21,000 employees and contractors. Key funded-debt buckets included $1.11 billion of 8.000% senior secured notes due 2025 secured by loyalty-program and brand IP collateral, a $300 million revolver secured by airport slots, engines, and spare parts, aircraft-backed EETC and loan debt, and unsecured convertible notes and Treasury payroll-support loans Cromer First Day Declaration [Dkt. 2].