Originally Posted by
FriendlyPilot
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.
Because a fully in tact, operational airline is worth more than whatever equity they could squeeze out of the assets at this point. Because they stand to lose in Chapter 11 depending on how that shakes out. Because maybe an equity swap with the thought of a sale or acquisition has a bigger financial upside. Lots of reasons.