Spirit Aviation Announces Chapter 11 Restructuring Support Agreement

Spirit Aviation Holdings Inc ( (FLYYQ) ) has provided an announcement.

On March 13, 2026, Spirit Aviation Holdings Inc. and its debtors signed a restructuring support agreement with a majority of their DIP lenders and certain secured noteholders, setting the framework for a Chapter 11 reorganization plan that will repay part of the DIP loans, grant lenders broad access to encumbered cash subject to minimum balance thresholds, and issue all of the equity in the reorganized company to Roll-Up DIP lenders and a small warrant stake to holders of prepetition secured notes. The proposed plan would also provide new exit financing, distribute sale proceeds from specified assets to DIP claimholders, cancel all general unsecured claims and wipe out existing common equity with no recovery, while a separate December 17, 2025 term sheet with engine maker IAE significantly cuts fleet obligations, delivers up to $140 million in maintenance credits, waives liquidated damages tied to large aircraft cancellations and supports Spirit’s shift to a smaller, more efficient fleet and materially lower operating costs.

More about Spirit Aviation Holdings Inc

Spirit Aviation Holdings Inc., through its subsidiary Spirit Airlines, operates in the U.S. airline industry as an ultra-low-cost carrier focused on price-sensitive and value-seeking leisure travelers. The company is in Chapter 11 and is shrinking and reshaping its fleet and network to emphasize higher-yield routes, a smaller 76-aircraft operation and an increased mix of owned A320/A321ceo aircraft to improve margins and reduce debt. The carrier is also repositioning its product with expanded premium seating and revamped revenue management to drive ancillary sales and unit revenue gains.

Average Trading Volume: 209,585

Technical Sentiment Signal: Strong Sell

Current Market Cap: $6.76M

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