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Spirit Airlines filed for Chapter 11 on 29 August in the US Bankruptcy Court for the Southern District of New York.

The filing marks the second filing since November 2024, and Judge Sean Lane, who oversaw the debtors’ first Chapter 11 case, has also been assigned to the current case.

A bifurcated first-day hearing has been scheduled for 2 September, with the first portion being heard at 10am ET, and the second portion at 3pm ET.

The Chapter 11 docket can be found on the 9fin platform.

Situation overview

The company enters Chapter 11 in free fall, with no DIP financing or agreement to use cash collateral. However, the debtors did draw $275m on their revolver shortly before the petition date, and thus have unencumbered cash currently available for use. The debtors indicate that they intend to use the Chapter 11 process to lighten their balance sheet and shed billions of dollars of liabilities and to implement the changes that are necessary to give the company a sustainable future that also delivers value for customers. The debtors intend to use the process to rightsize their fleet and redesign their network to fly to key markets while reducing presence in other cities.

While the debtors indicate that they have been negotiating with their secured noteholders and other key stakeholders, no agreement with respect to how to proceed through Chapter 11 has yet been reached.