In a pivotal moment for its restructuring flight path, Spirit Airlines secured court approval Friday to borrow $200 million as part of a Chapter 11 financing package designed to keep the cash-strapped budget carrier airborne while trimming down its jet fleet.
U.S. Bankruptcy Judge Sean H. Lane, presiding in New York, granted interim approval for the loan—part of a larger $475 million debtor-in-possession (DIP) funding plan that could inject much-needed liquidity into Spirit’s reorganization efforts. The decision also greenlights a landmark settlement with AerCap, the airline’s largest aircraft lessor, allowing Spirit to shed 27 leases in a move expected to redefine its operational future.
“This is an important, encouraging, and positive sign,” said Marshall S. Huebner of Davis Polk & Wardwell LLP, Spirit’s lead counsel. “The uncontested nature of the request speaks volumes.”
Judge Lane agreed. “I’m happy to approve it,” he remarked, calling the consensus “a reflection of strong progress.”
