Originally Posted by FriendlyPilot

The problem is those bond holders now have secured debt. So the $2.1B total they are owed now needs to get paid from sales of other assets. This gets paid before wages. So that $512M would have gone a long way to cover them.

Frontier isn't going to take over Spirit's liabilities. The BK administrator doesn't just "wipe out debt" so some other airline can get a sweet deal. Spirit "taking the deal" doesn't include just super diluting its financial responsibilities. The people that loaned money will all get paid.

This isn't waying Frontier won't take on all that debt, but why would they do it? Trying to carry that $1B a year operating loss going forward would crush them.