Spirt filed for Chapter 11 again
12-15-2025 | 05:02 PM
#581
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While I do love the optimism, it is still concerning that Mr. Davis spins the $50M as a vote of confidence. If DIP investors were confident, they would have gladly handed over $100M. It didn’t happen. This shows, what I would consider, a last chance to NK. It does make me wonder that it actually buys time for the investors to weigh their options before pulling the plug. I’m not sure this gives any airline confidence to buy NK. By this time, NK promised to have a buyer or have a plan in place showing sustainable operations. Neither happened. I’m worried!
If "neither happened" is exactly what was going on the in boardroom, I suspect the lights would've been shut off Saturday night..
12-15-2025 | 05:11 PM
#582
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12-15-2025 | 06:04 PM
#584
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Okay, maybe. But we both still have to operate independently during the year long plus DOJ process before we become one company. Neither of us have the capital.
12-15-2025 | 06:36 PM
#586
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I mean, we definitely weren't in the boardroom.. we can't say with certainty that neither happened.. we have no idea what the lenders seen.. if we have an IOI, if we're in late stage merger talks, anything really.. there was nothing that required public disclosure..
If "neither happened" is exactly what was going on the in boardroom, I suspect the lights would've been shut off Saturday night..
If "neither happened" is exactly what was going on the in boardroom, I suspect the lights would've been shut off Saturday night..
12-15-2025 | 06:55 PM
#587
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12-15-2025 | 07:24 PM
#588
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I disagree. There’s risk to the investors as NK continues to lose money. You’re right, none of us were in the board room but there has been zero purchase offers, just AA buying two gates. Operationally, NK continues to lose lots of money. Is the $50M an opportunity to see how paycuts will affect the bottom line? Maybe. Frontier is not in a good financial position and their pilots are frustrated in contract negotiations. The lack of $100M tells me that investors are not completely convinced of success but essentially will give NK another month with half the cash. Hoping it will be a successful month with no speed bumps. If not, I think the cash stops.
Or possibility B is just that the lenders are using leverage to, perhaps, force the board of directors and management to get across the finish line with a merger deal they may not love..
At this point, I agree with comments made here.. Spirits board and management, at current cash burn was, effectively given two weeks to make a decision (from a DIP perspective, do the thing that gets them their most money back)..
12-15-2025 | 08:42 PM
#589
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I doubt very highly that there is some merger deal that the lenders really want, but the BOD and management isn't happy with so the lenders are giving Spirit $50M more to get them to accept it. The limit is the debt that's secured to the assets. Management would be head over heals for a decent deal, its the secured debt that's the problem.
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