According to the Wall Street Journal, Spirit is currently engaged in talks with bondholders and other creditors with the intention to explore potential support for Chapter 11 filing. However, the sources familiar with the talks indicate that the move wouldn’t be imminent even if the airliner selects the bankruptcy route.

Spirit is reportedly also trying to restructure its balance sheet via of-court transactions, but those attempts haven’t been effective so far.

While most airlines bounced back from the pandemic struggles, Spirit has been slow to recover. The company has been dealing with mounting debt while managing to turn a profit just once in the past six quarters.

Spirit attempted to salvage itself through a proposed $3.8 billion merger with JetBlue, but the move, which would create the fifth-larger airline in the nation, ended up being blocked by a federal district judge due to reduced competition concerns. The company was also hurt by an engine recall from Pratt & Whitney that caused more than a dozen of its planes to be grounded for a prolonged period.

 Spirit’s stock closed at $2.24 on Thursday before tumbling all the way down to $1.52 per share in extended trading. The stock was already 86.30% down year-to-date before the drop.

The post Spirit Airlines Stock Crashes 32% on Report of Possible Bankruptcy Filing appeared first on theprimarymarket.com.

Frontier is now offering $4.13 per share, which is $2 more than their original offer. They are also upping the proposed reverse break-up fee to $350 million compared to the previous $250 million. Finally, Frontier also committed to a pre-payable $2.22 to shareholders of Spirit.

It has been a back-and-forth battle between Frontier and JetBlue for a chance to acquire Spirit. JetBlue has been particularly aggressive in its attempts, sweetening the deal multiple times. Frontier doing the same should now even the playing field.

Regardless of the route Spirit shareholders take, the end result will be the fifth-biggest airline in the United States. At the moment, there is much more support for the Frontier and Spirit merger than the JetBlue and Spirit. Ted Christie, the CEO of Spirit, has been in favor of the Frontier deal, believing that it will have an easier path to confirmation by U.S. regulators. Proxy advisory firm Institutional Shareholder Services Inc (ISS) now shares his view as well after previously favoring JetBlue’s offer.

The post Frontier Airlines Sweetens Bid for Spirit Ahead of Shareholder Vote appeared first on theprimarymarket.com.

The new terms would see shareholders getting $31.50 in cash, including $30 at deal close and a prepayment of $1.50. The latter would come from a raised reverse break-up fee, which was increased from $150 million to $350 million according to the latest offer.

JetBlue’s last-minute attempt comes after Frontier Group Holdings Inc. emerged as a favorite to take Spirit under its wing. Frontier’s offer includes $250 million in reverse break-up fee. It is subject to vote by Spirit’s shareholders on Friday and has already been endorsed by advisory firm Glass Lewis.

JetBlue always offered better financial terms, surpassing $3 billion both times. On the other hand, Frontier offered around $2.8 billion, but Glass Lewis believes they have much an easier path to sealing the deal and avoiding antitrust regulations. However, the firm will now have to revise its opinion due to JetBlue’s improved offer.

It remains to be seen how Friday’s vote unfolds, but it shouldn’t be surprising if the pressure of big investors causes shareholders to walk away from Frontier and turn to JetBlue.

The post JetBlue Makes Last-Minute Improved Offer for Spirit Airlines appeared first on theprimarymarket.com.

According to the Wall Street Journal, Spirit is currently engaged in talks with bondholders and other creditors with the intention to explore potential support for Chapter 11 filing. However, the sources familiar with the talks indicate that the move wouldn’t be imminent even if the airliner selects the bankruptcy route.

Spirit is reportedly also trying to restructure its balance sheet via of-court transactions, but those attempts haven’t been effective so far.

While most airlines bounced back from the pandemic struggles, Spirit has been slow to recover. The company has been dealing with mounting debt while managing to turn a profit just once in the past six quarters.

Spirit attempted to salvage itself through a proposed $3.8 billion merger with JetBlue, but the move, which would create the fifth-larger airline in the nation, ended up being blocked by a federal district judge due to reduced competition concerns. The company was also hurt by an engine recall from Pratt & Whitney that caused more than a dozen of its planes to be grounded for a prolonged period.

 Spirit’s stock closed at $2.24 on Thursday before tumbling all the way down to $1.52 per share in extended trading. The stock was already 86.30% down year-to-date before the drop.

The post Spirit Airlines Stock Crashes 32% on Report of Possible Bankruptcy Filing appeared first on theprimarymarket.com.

Frontier is now offering $4.13 per share, which is $2 more than their original offer. They are also upping the proposed reverse break-up fee to $350 million compared to the previous $250 million. Finally, Frontier also committed to a pre-payable $2.22 to shareholders of Spirit.

It has been a back-and-forth battle between Frontier and JetBlue for a chance to acquire Spirit. JetBlue has been particularly aggressive in its attempts, sweetening the deal multiple times. Frontier doing the same should now even the playing field.

Regardless of the route Spirit shareholders take, the end result will be the fifth-biggest airline in the United States. At the moment, there is much more support for the Frontier and Spirit merger than the JetBlue and Spirit. Ted Christie, the CEO of Spirit, has been in favor of the Frontier deal, believing that it will have an easier path to confirmation by U.S. regulators. Proxy advisory firm Institutional Shareholder Services Inc (ISS) now shares his view as well after previously favoring JetBlue’s offer.

The post Frontier Airlines Sweetens Bid for Spirit Ahead of Shareholder Vote appeared first on theprimarymarket.com.

The new terms would see shareholders getting $31.50 in cash, including $30 at deal close and a prepayment of $1.50. The latter would come from a raised reverse break-up fee, which was increased from $150 million to $350 million according to the latest offer.

JetBlue’s last-minute attempt comes after Frontier Group Holdings Inc. emerged as a favorite to take Spirit under its wing. Frontier’s offer includes $250 million in reverse break-up fee. It is subject to vote by Spirit’s shareholders on Friday and has already been endorsed by advisory firm Glass Lewis.

JetBlue always offered better financial terms, surpassing $3 billion both times. On the other hand, Frontier offered around $2.8 billion, but Glass Lewis believes they have much an easier path to sealing the deal and avoiding antitrust regulations. However, the firm will now have to revise its opinion due to JetBlue’s improved offer.

It remains to be seen how Friday’s vote unfolds, but it shouldn’t be surprising if the pressure of big investors causes shareholders to walk away from Frontier and turn to JetBlue.

The post JetBlue Makes Last-Minute Improved Offer for Spirit Airlines appeared first on theprimarymarket.com.