Spirit Airlines continues 'constructive talks' with creditors

(Reuters) -Spirit Airlines is in constructive discussion with its creditors and continues to explore strategic alternatives to improve liquidity, the ultra-low-cost carrier said on Tuesday.

The negotiations, with a supermajority of the noteholders, have remained productive, advanced materially and are resuming in the near term, it added.

If the agreement fails, it will lead to the cancellation of existing equity and it will consider all alternatives, the statement said.

The company said its adjusted operating margin in the third quarter would be down 12% from last year.

Earlier in the day, the Wall Street Journal reported that the company is preparing to file for bankruptcy protection after merger talks with Frontier Airlines broke down.

The company did not immediately respond to a Reuters request for comment.

Shares of the company were down 39% at $1.8 after the bell. The stock has fallen nearly 80% this year, while the S&P 500 passenger airlines index jumped 52%.

The Dania Beach, Florida-based airline has been losing money despite strong travel demand. It has failed to report a profit in the last five out of six quarters, raising doubts about its ability to manage looming debt maturities.



Spirit said in October that it would furlough about 330 pilots on Jan. 31 as part of its efforts to cut costs and shore up its finances. 

The company is also selling 23 older Airbus aircraft for $519 million. The sale proceeds are estimated to provide $225 million of liquidity next year.

Source: Investing.com

Последние публикации
Huawei launches Mate 70 smartphone as new US chip curbs loom
26.11.2024 - 09:00
Factbox-Major fallout for India's Adani Group after U.S. bribery indictment
26.11.2024 - 09:00
Japan stocks lower at close of trade; Nikkei 225 down 0.84%
26.11.2024 - 09:00
Nissan seeks investor to replace some of Renault's equity holding, FT reports
26.11.2024 - 08:00
Walmart to roll back some diversity policies amid pressure from conservatives
26.11.2024 - 08:00
Google proposes fresh tweaks to search results in Europe
26.11.2024 - 08:00
Dollar climbs, stocks retreat after Trump vows tariffs
26.11.2024 - 08:00
Disney settles suit over women's pay for $43 million
26.11.2024 - 08:00
Roche to acquire US firm Poseida Therapeutics in $1.5 billion deal
26.11.2024 - 08:00
Asia stocks fall after Trump threatens tariffs, Japan's Nikkei leads losses
26.11.2024 - 07:00
Japan stocks eye strong 2025 amid limited tariff impact- BofA
26.11.2024 - 07:00
Adani Green Energy says no talks on new financial commitment with TotalEnergies
26.11.2024 - 07:00
Tesla would likely be excluded from new California EV tax credits -governor's office says
26.11.2024 - 07:00
Citigroup slashes promotions as it seeks to overhaul bank, FT reports
26.11.2024 - 07:00
Asia stocks fall after Trump threatens tariffs, Japan's Nikkei lead losses
26.11.2024 - 06:00

© Analytic DC. All Rights Reserved.

new
Анализ рынка Как повлият завтра отчет NFP на курс доллара США?