Spirit Airlines rejects Frontier's bid, expects to exit bankruptcy in first quarter
29/01/2025 12:35
Jan 29 (Reuters) - Spirit Airlines SAVEQ.PK on
Wednesday said it expects to exit bankruptcy in the first
quarter and rejected a merger with rival Frontier Group
ULCC.O , saying it was not favorable for the low-cost carrier.
It received a proposal from Frontier earlier this month,
where in its shareholders would $400 million in debt and a 19%
share in Frontier, the company said in a regulatory filing.
Spirit rejected the proposal as it would not provide the
anticipated shareholder value and raised concerns over the
timing and successful completion of the deal.
The Florida-based airline declared bankruptcy in November
after grappling with prolonged periods of financial losses,
unsuccessful merger efforts and a substantial levels of debt.
The airline said it expects to complete its restructuring
process in the first quarter.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Arun
Koyyur)
((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192; X:
@Shivansh_19_;))