Spirit Airlines in talks with bondholders over terms of potential bankruptcy filing, WSJ reports
2024.10.03 17:45
(Reuters) -Spirit Airlines is in talks with bondholders over terms of a potential bankruptcy filing in the wake of its failed merger with JetBlue Airways (NASDAQ:), the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Shares of Spirit were down 18% in after market trading.
Spirit Airlines (NYSE:) did not immediately respond to a Reuters request for comment.
The report added that the budget carrier has also been exploring restructuring its balance sheet through an out-of-court transaction, though recent talks have been more focused on reaching a deal with bondholders and other creditors to support a Chapter 11 filing.
The timing of such a filing, should it happen, wouldn’t be imminent, the WSJ report said.
In June, CEO Ted Christie said the airlines was not considering a Chapter 11 bankruptcy and is “encouraged” by the plan it has in place after the deal with JetBlue fell through.
