Spirit Now Sure As It Emerges From Bankruptcy
08-12-2025 | 05:07 PM
#1071
Line Holder
Joined: Oct 2017
Posts: 434
Likes: 14
The bondholders would have to agree to that purchase. Why would they allow the parts to be sold cheaply and not get anything out of it? Attached to those assets, which aren't really very valuable, is a bunch of debt. Who's want to pay $2B for Spirit right now? The market cap is currently about $50M.
B6 is the last airline that could buy NK. It would be like catching a falling anvil.
B6 is the last airline that could buy NK. It would be like catching a falling anvil.
Also I'd argue that when many of the debt holders won't see a dime in Ch7 perhaps they would accept a lesser amount to forgive the debt. Half of something is better than nothing at all.
08-12-2025 | 05:28 PM
#1072
That/It/Thang
Joined: Aug 2020
Posts: 3,463
Likes: 275
I mean buying a fully functioning airline with trained and proficient staff, gates, etcetera holds some value above its liquidation value. I'm not arguing that it will happen, only that it could. Most companies purchased in BK have had an upside down balance sheet so anything could happen.
Also I'd argue that when many of the debt holders won't see a dime in Ch7 perhaps they would accept a lesser amount to forgive the debt. Half of something is better than nothing at all.
Also I'd argue that when many of the debt holders won't see a dime in Ch7 perhaps they would accept a lesser amount to forgive the debt. Half of something is better than nothing at all.
It’s millions and millions of dollars plus literal billions of debt.
08-12-2025 | 05:51 PM
#1073
On Reserve
Joined: Jul 2025
Posts: 43
Likes: 23
It really doesn’t. If an airline buys NK, they have to continue to fund the massive losses while trying to integrate the NK product to the new product. That “trained and proficient staff” would all need to be retrained before flying on the new certificate; all costing money and time. Every plane would need to have over a million spent on each plane and time to retrofit it while making lease payments on it. Oh…and the Pratt issue is still there. The only gate/airport is real value are LGA slots. It’s not like you buy NK and that purchase starts to make money anytime soon.
It’s millions and millions of dollars plus literal billions of debt.
It’s millions and millions of dollars plus literal billions of debt.
08-12-2025 | 06:04 PM
#1075
Gets Weekends Off
Joined: Mar 2014
Posts: 4,114
Likes: 291
I would imagine every carrier out there is running the numbers on making an offer to purchase. You just never know what will transpire and where things will end up.
It can't be bought for the market cap though. That is just the outstanding stock. I'd bet $100, those who invested during the bankruptcy have a majority share and the stock is just like 10% ownership or some such. Buying all outstanding shares will not result in taking control of Spirit.
It can't be bought for the market cap though. That is just the outstanding stock. I'd bet $100, those who invested during the bankruptcy have a majority share and the stock is just like 10% ownership or some such. Buying all outstanding shares will not result in taking control of Spirit.
08-12-2025 | 06:06 PM
#1076
Line Holder
Joined: Sep 2014
Posts: 682
Likes: 29
Yeah, that ain’t happening. The bond holders, if they decide enough is enough, will not continue to lose money to wind it down with dignity. I almost wonder if this post was meant to be satirical. Why do you think these money men would continue to lose money down to the “last flight to turn off the lights”.
Like Patsy told Gloria; “it won’t be cinematic”
Like Patsy told Gloria; “it won’t be cinematic”
08-12-2025 | 06:17 PM
#1077
Line Holder
Joined: Mar 2020
Posts: 441
Likes: 96
Management doesn't care about that. It's all about the merger bonuses and sweet stock option awards for the new managers. There's been worse mergers out there like AOL and Verizon. They still go through because management sees the juicy bonuses and the investment bankers see the fat fees. I bet AA will be interested, because it fits their low cost provider business model and they fly the Airbus.and AA loves debt, even to the detriment of it's shareholders.
08-12-2025 | 07:22 PM
#1078
Line Holder
Joined: Oct 2017
Posts: 434
Likes: 14
Plus, all of the big 3 lose money on their flying. NK isn't alone there. Their network size makes them money through corporate contracts and credit cards.
NK is losing money due to its lack of the above and it's brand (sorry). Both of those obstacles would be removed if folded into a national carrier. Any airline that made a purchase would grow it's network and make its contracts and cards more valuable.
Again, a CH 7 is very possible so I'd be preparing for that, but it ain't over til it's over.
NK is losing money due to its lack of the above and it's brand (sorry). Both of those obstacles would be removed if folded into a national carrier. Any airline that made a purchase would grow it's network and make its contracts and cards more valuable.
Again, a CH 7 is very possible so I'd be preparing for that, but it ain't over til it's over.
08-12-2025 | 07:27 PM
#1079
Gets Weekends Off
Joined: Jan 2018
Posts: 2,823
Likes: 224
Plus, all of the big 3 lose money on their flying. NK isn't alone there. Their network size makes them money through corporate contracts and credit cards.
NK is losing money due to its lack of the above and it's brand (sorry). Both of those obstacles would be removed if folded into a national carrier. Any airline that made a purchase would grow it's network and make its contracts and cards more valuable.
Again, a CH 7 is very possible so I'd be preparing for that, but it ain't over til it's over.
NK is losing money due to its lack of the above and it's brand (sorry). Both of those obstacles would be removed if folded into a national carrier. Any airline that made a purchase would grow it's network and make its contracts and cards more valuable.
Again, a CH 7 is very possible so I'd be preparing for that, but it ain't over til it's over.
08-12-2025 | 07:30 PM
#1080
Line Holder
Joined: Sep 2020
Posts: 1,564
Likes: 345
I mean buying a fully functioning airline with trained and proficient staff, gates, etcetera holds some value above its liquidation value. I'm not arguing that it will happen, only that it could. Most companies purchased in BK have had an upside down balance sheet so anything could happen.
Also I'd argue that when many of the debt holders won't see a dime in Ch7 perhaps they would accept a lesser amount to forgive the debt. Half of something is better than nothing at all.
Also I'd argue that when many of the debt holders won't see a dime in Ch7 perhaps they would accept a lesser amount to forgive the debt. Half of something is better than nothing at all.
The fully functioning airline is a big money loser. Its all leveraged and loses more than it makes. Its a huge liability. Unfortunately its worth more liquidated to the people making the decisions and the ones who took the financial risk.
Thread
Thread Starter
Forum
Replies
Last Post
