Originally Posted by taketheshot

i think his point is that the bank wouldn’t agree to continue letting nk operate at all if there wasn’t some hope on the horizon to get their money back. Whether that’s good for the pilots is another story.. is it’s an acquisition? Those aircraft finally sold? Some other event that will increase liquidity, none of us know but there must be something that motivated them to make a deal rather than pull the plug completely. They have no goodwill for NK they just want their money.

Originally Posted by spooldup

Exactly this. No one in their right mind would give Spirit a 1 year credit line and an amended holdback agreement if there wasnt a sale out there that was already agreed upon which would ensure spirit could pay back Citi and the USB.

Spirit is sold, we dont know who, yet. But the bank basically decided that instead of cutting your head off now they will stab you in your leg and tie a tourniquet? Banks do not agree to drip 3m drops of blood when you owe them 500m.

Originally Posted by taketheshot

i think his point is that the bank wouldn’t agree to continue letting nk operate at all if there wasn’t some hope on the horizon to get their money back. Whether that’s good for the pilots is another story.. is it’s an acquisition? Those aircraft finally sold? Some other event that will increase liquidity, none of us know but there must be something that motivated them to make a deal rather than pull the plug completely. They have no goodwill for NK they just want their money.

Originally Posted by taketheshot

i think his point is that the bank wouldn’t agree to continue letting nk operate at all if there wasn’t some hope on the horizon to get their money back. Whether that’s good for the pilots is another story.. is it’s an acquisition? Those aircraft finally sold? Some other event that will increase liquidity, none of us know but there must be something that motivated them to make a deal rather than pull the plug completely. They have no goodwill for NK they just want their money.

Originally Posted by Name User

What happened would be like if you got laid off and that evening went and maxed out your credit card cash withdrawal limit. It doesn't mean squat except Spirit has now maxed out their credit limit.

Originally Posted by CincoDeMayo

Exactly. Some on here are so deep into fantasy land.

The bank had to let Spirit take the rest of the revolving credit line. They maxed out their credit card, like you said, this isnt a sign the bank knows something good is coming.

The credit card company gets $50m now and $3m a month to cover their exposure. This is because they believe NK is probably NOT going to get thru this, not the opposite. Spirit is officially in credit card "hold back" territory. This is the fastest way to sink the ship. You think they have liquidity problems now, now they get to hold back $100,000 a day that the credit card gets to bank each month. $3m a month plus the $50m down payment. They (CC company) have done the math and Im sure they figured "If we get $3m a month for the next 12 months, thats $86m in collateral against cc payments, that covers us". Think about how much per flight, per day, goes to just this credit card shakedown fee. 500 flights a day in Q3, $100,000 to the CC company per day, thats $200 a flight just for the CC company to let them continue to do business, a cost they did not have last week.

So now the theory from some is the "company is sold" to someone else, and this new owner will now take on the existing billions in debt, a product that is losing money by the minute and now another $270m in debt due in 18 months AND letting $50m and $3m a month walk out the door to process credit cards?! How does this make sense for anyone?

Originally Posted by CincoDeMayo

The credit card company gets $50m now and $3m a month to cover their exposure.

Originally Posted by doz4dllrs

Do you mean 3 million per day?


Effective on August 15, 2025 and August 20, 2025, Spirit and USB entered into two amendments (the "Amendments") to the Card Processing Agreement. On August 15, 2025, Spirit agreed to make an additional transfer of $50 million in cash to a pledged account in favor of USB. On August 20, 2025, Spirit agreed to allow USB (i) to holdback up to $3 million per day until USB's exposure is fully collateralized and (ii) to remain fully collateralized as USB's exposure increases or decreases. In exchange, USB agreed i) to extend the term of the Card Processing Agreement from the current December 31, 2025 expiry date to December 31, 2027, with two automatic one-year extensions unless either party provides a notice of non-renewal not less than 90 days prior to the end of the then-effective term, and (ii) to remove the existing minimum liquidity trigger for holdbacks under the Card Processing Agreement.

Originally Posted by doz4dllrs

Do you mean 3 million per day?


Effective on August 15, 2025 and August 20, 2025, Spirit and USB entered into two amendments (the "Amendments") to the Card Processing Agreement. On August 15, 2025, Spirit agreed to make an additional transfer of $50 million in cash to a pledged account in favor of USB. On August 20, 2025, Spirit agreed to allow USB (i) to holdback up to $3 million per day until USB's exposure is fully collateralized and (ii) to remain fully collateralized as USB's exposure increases or decreases. In exchange, USB agreed i) to extend the term of the Card Processing Agreement from the current December 31, 2025 expiry date to December 31, 2027, with two automatic one-year extensions unless either party provides a notice of non-renewal not less than 90 days prior to the end of the then-effective term, and (ii) to remove the existing minimum liquidity trigger for holdbacks under the Card Processing Agreement.