Spirit was slow to recover from the pandemic and kept on facing one issue after another. It attempted to solve them by agreeing to a merger with rival JetBlue Airways before having the deal blocked by regulators. It currently has around $9 billion in debt and hasn’t been profitable since 2019.

The company now expects that the bankruptcy process will allow it to reduce its debt and increase its financial flexibility before emerging in the first quarter of 2025.

Spirit said in a statement that the passengers won’t be affected by Chapter 11 filing.

“Spirit expects to continue operating its business in the normal course throughout this prearranged, streamlined chapter 11 process. Guests can continue to book and fly without interruption and can use all tickets, credits, and loyalty points as normal,” said the company.

Spirit’s stock has been delisted from the New York Stock Exchange as a result of filing. It was previously 94% down year-to-date.

The post Spirit Airlines Files for Bankruptcy, Will Continue Operating 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.

Spirit was slow to recover from the pandemic and kept on facing one issue after another. It attempted to solve them by agreeing to a merger with rival JetBlue Airways before having the deal blocked by regulators. It currently has around $9 billion in debt and hasn’t been profitable since 2019.

The company now expects that the bankruptcy process will allow it to reduce its debt and increase its financial flexibility before emerging in the first quarter of 2025.

Spirit said in a statement that the passengers won’t be affected by Chapter 11 filing.

“Spirit expects to continue operating its business in the normal course throughout this prearranged, streamlined chapter 11 process. Guests can continue to book and fly without interruption and can use all tickets, credits, and loyalty points as normal,” said the company.

Spirit’s stock has been delisted from the New York Stock Exchange as a result of filing. It was previously 94% down year-to-date.

The post Spirit Airlines Files for Bankruptcy, Will Continue Operating 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.