Spirit Now Sure As It Emerges From Bankruptcy
08-12-2025 | 07:42 PM
#1081
Line Holder
Joined: Sep 2021
Posts: 287
Likes: 18
The debt holders will get paid first ahead of everyone else, even employee wages. To say "they won't get a dime" is not even close. They literally get every penny until their "senior secured notes" are paid off. That's why they agreed to the DIP financing and convert their debt to the highest priority debt possible, plus take control of the company.
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.
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.
08-12-2025 | 07:46 PM
#1083
Line Holder
Joined: Sep 2017
Posts: 1,169
Likes: 164
From: NK CA
I don’t disagree with any of this…what I don’t understand is, why wait and burn through another $250M (or any amount for that matter) if the most likely outcome at this point is liquidation? If they don’t see a viable path forward, why not pull the plug now and keep as much as they can?
08-12-2025 | 08:30 PM
#1084
Line Holder
Joined: Nov 2024
Posts: 279
Likes: 181
Maybe one more shot at a Hail Mary Merger? Would be great to see but man it’s a lot of risk for any of the contenders… not many airlines have the balance sheet to take over an operation with such a high cash burn, and the ones that do would still have to spend even more on paint, fleet conformity, training, and so much more. All of that takes even more investment and time.
08-13-2025 | 01:53 AM
#1085
Bent over by buybacks
Joined: Feb 2017
Posts: 1,570
Likes: 528
08-13-2025 | 02:47 AM
#1087
Line Holder
Joined: Jul 2008
Posts: 907
Likes: 26
All they’d have had to do was “agree” to not do what bugged the doj. Particularly the part about completely eliminating the spirit brand and growing their own. Just fake lit like everyone else. The “plan” doesn’t have to work. And of course per the officials, JB never once attempted to find any middle ground. A few optics here and there to appear as if their intent was genuine.
See it for how you want but a conservative judge of 40 freaking years that has a history of siding in favor of mergers……..::just doesn’t know the law? Like we pilots know better than him? Heck even TC knew the law and success was highly unlikely.
See it for how you want but a conservative judge of 40 freaking years that has a history of siding in favor of mergers……..::just doesn’t know the law? Like we pilots know better than him? Heck even TC knew the law and success was highly unlikely.
JetBlue wanted Spirit. The goal was not to put them out of business.
The Biden DOJ argue the Sherman Act which had never been argued before in an airline merger.
This is on the DOJ, not JetBlue.
08-13-2025 | 03:09 AM
#1088
Line Holder
Joined: Apr 2007
Posts: 1,412
Likes: 12
From: A320
I didn’t look at the filing. Learned of it from a spirit passenger that posted it to social media. The comments are an indication that spirit is in a deep stall with insufficient altitude to recover.
08-13-2025 | 04:26 AM
#1089
Line Holder
Joined: Aug 2024
Posts: 812
Likes: 228
08-13-2025 | 04:35 AM
#1090
Line Holder
Joined: Apr 2013
Posts: 738
Likes: 35
Middle ground? They begged the DOJ to follow past precedent and allow concessions to not sue to block.
JetBlue wanted Spirit. The goal was not to put them out of business.
The Biden DOJ argue the Sherman Act which had never been argued before in an airline merger.
This is on the DOJ, not JetBlue.
JetBlue wanted Spirit. The goal was not to put them out of business.
The Biden DOJ argue the Sherman Act which had never been argued before in an airline merger.
This is on the DOJ, not JetBlue.
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