Originally Posted by
CatPilot1
Frontier made offers eight and six months ago. Maybe it’s time for Spirit to return to Chapter 11 and position itself for a 363 asset sale. That would allow the airline to be sold in whole or in parts while shedding its debt in the process.
The offer was ridiculous. The bondholders were supposed to remove their $3B debt claim for $400M in cash and 19% equity in Frontier. So $600M in stock and cash for a near clean slate acquisition. The bondholders knew they could get more with a liquidation so they turned it down.