Originally Posted by
FriendlyPilot
Share price is not the issue. Its the massive debt that Frontier would have to take ownership of. Can Frontier afford to drop $1.2B this next september to make the balloon payment plus the ongoing 8% interest payments on the other $2B? That's $160M a year in added debt. Can Frontier magically add $160M in profits with Spirits assets? Because the turn-around on that now is substantial with the current business model not working.
Indigo could by Spirit and take it private while renegotiating its debt all while running it as a separate airline. After everything is settled with the debt they could then sell it to Frontier at manageable price. The goal is to acquire Spirit without someone else coming in and screwing it all up again.