Spirit Airlines receives approval for financing, agreement with AerCap

Spirit Aviation, parent company of Spirit Airlines (FLYY), announced it has received approval from the U.S. Bankruptcy Court for the Southern District of New York for a multi-tranche debtor-in-possession financing facility of up to $475 million from its existing bondholders. In addition, Spirit has received Court approval for the agreement with AerCap (AER), its largest aircraft lessor. These approvals mark an important milestone in the Company’s ongoing Chapter 11 restructuring to position Spirit for the future. The Court’s approval of Spirit’s agreement with AerCap includes a $150 million payment from AerCap to Spirit, the rejection of 27 aircraft leases and the resolution of all claims and disputes between the parties. The agreement allows the Company to reduce operating costs by hundreds of millions of dollars and provides for the future delivery of 30 aircraft.