Originally Posted by
flier320
Can someone explain why the extra "restricted cash", mandated by the December 2025 extension of the credit card processing agreement with US Bank, is suddenly gone?
Nov filing: 586 cash + 205 restricted cash
Dec filing: 272 cash + 591 restricted cash
Jan filing: 610 cash + 212 restricted cash
Feb filing: 560 cash + 219 restricted cash
It appears the company moved the restricted cash back to unrestricted cash again?
If US Bank still had their approximately 380 million restriction, cash on hand would be down to 180 million (minus losses for March and April).
This definitely changes how long the company will be able to operate.
No wonder US Bank want it liquidated.
The money being held by US Bank is not "restricted cash". its actually part of Spirit's "unrestricted cash". Its a GAAP nuance. Its Spirit's money, they just don't have possession of it. Its being held by US Bank. My guess is whoever did the December MOR screwed up and accounted for the US Bank holdback as "restricted" which means they are holding about $380M of Spirit's cash to pay back people that bought tickets in the event Spirit closes its doors.
The bad news is that Spirit looks to be burning $2M a day according to the February MOR and probably a lot more now because of fuel prices.
Spirit can't just burn down to $0 because of minimum liquidity covenants which are independent of restricted cash. Its highly likely that Spirit's unrestricted cash could be down to its "liquidity covenants" which is why all the talk about shutting down.
Another huge problem is that there are probably a large number of book-aways because of all the warnings of a shut down, so people are not booking on Spirit and its just going to accelerate.