Originally Posted by
CatPilot1
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.
Why would the bondholders even want to renegotiate? If Spirit doesn't pay them they can sell the assets and recoup their investment. The only reason to refinance would be at a higher interest rate and then Frontier or Indigo would get stuck with that even greater debt load. Its not like the bondholders will be wiped out. They are the most senior note holders and will get paid off before anyone else and will be paid in full. Its the subordinate debt holders that might want to renegotiate, but the amount isn't enough to make a difference financially.