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.
Curious but what good are assets that are unable to generate revenue? Many of the assets that would have to be sold, are basically worthless until re engined. Sort of a unique scenario really. I have no idea how many aircraft are actually in this state. But it’s definitely more than 23.