Points Guy founder Brian Kelly discussed how the insolvency of Spirit Airlines could affect the journey.
- Spirit Airlines rejected the offer of an acquisition of about $ 2.16 billion from the Frontier Group.
- Spirit and Frontier are at least in the merger talks since at least 2022, even before the Spirit filed for bankruptcy in 2024.
- Spirit Airlines filed for bankruptcy due to prolonged financial loss and adequate debt load.
Spirit Airlines on Tuesday rejected the Offer of the Ontier Group’s acquisition, priced at around $ 2.16 billion, stating that its companions bid to the ultra-lo-cost carrier to shareholders compared to their ongoing restructuring plan Was less beneficial.
Frontier offering From the beginning of this month, his proposal was reunited in which he proposed that Spirit shareholders would get $ 400 million in debt and 19% in Frontier.
However, it abandoned a requirement that the soul fulfills the offer of $ 350 million equity rights and uses income to retire its debt-in-position feature. For this, the $ $ 35 million termination fee approved by the bankruptcy court should be waived.
Spirit Airlines no longer allows passengers to fly with improper clothes or tattoos
Soul Declared for insolvency conservation Last year and the first quarter expected to complete its restructuring, the revised proposal did not address some physical risks and issues that were previously identified.
Spirit Airlines rejected the latest acquisition proposal of the Frontier Group, priced at $ 2.16 billion, on February 12, 2025. (Reuters/Mike Black/File Photo/Reuters)
Instead, the Florida airline offered a counterproposal, in which the Spirite shareholders would get $ 600 million loans and $ 1.185 billion equity-which the frontier rejected.
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The two companies were in conversation of merger at least 2022, even before the sentiment filed for bankruptcy due to prolonged financial loss and adequate debt load.
However, Jetbu Airways jumped into the ground and became strong. But That deal was finished An American judge blocked it over anti -competition concerns.
The Frontier revived his acquisition efforts earlier this year, but Spirit said that the first proposal was inferior to both of them, of which both companies discussed last year and asked for assurance that the deal would be closed. And the frontier will not run away.
