Spirit Airlines is on shakier ground after avoiding hard decisions in bankruptcy – CNBC
Spirit continues to teeter, most recently agreeing to extend its credit card processor agreement but only after giving up millions to make it happen. The struggle continues.
At least it avoided a 100% holdback. That would’ve been catastrophic.
Nick – But is this not a 100% holdback? It looks like Spirit transferred $50 million into an account for USB to reduce its exposure. And then it says in the 8-K, “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.”
This is beyond my area of expertise, but it sounds like that’s a 100% holdback, no?
I’m not optimistic about their chances of survival at this point. I wouldn’t be surprised if they go into Ch.7 before 2026. I can’t think of any carrier offhand that would want to buy/merge with the yellow disaster.
Is that $15.8 million per month lease rate for an A321 engine figures accurate? I was under the impression that the purchase price was in that ballpark. Eve in if that figure includes maintenance costs, it seems high.
Leave a Reply to Nick Bax Cancel reply