DANIA BEACH, FLORIDA (VINnews) — Spirit Airlines is in discussions with Minneapolis-based alternative investment firm Castlelake for a possible takeover, as the ultra-low-cost carrier seeks a way to emerge from its second Chapter 11 bankruptcy filing in less than a year, according to people familiar with the matter.
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CNBC reported the talks Thursday, citing sources. No deal has been reached, and discussions may not lead to a transaction.
Spirit, based in Dania Beach, Florida, declined to comment on the report, telling the Business Journal, “We don’t comment on market rumors and speculation.” Castlelake did not immediately respond to inquiries.
The development comes as Spirit’s Chapter 11 case progresses in the U.S. Bankruptcy Court for the Southern District of New York. In a Jan. 15 motion, creditor AAA Plus Tax LLC sought authority to negotiate a proposed settlement framework for disputed claims. The framework could include a transaction covering substantially all of Spirit’s operating airline assets, with remaining assets and litigation claims handled separately.
The motion does not seek approval of any specific deal and notes that any agreement would require further court filings, stakeholder notice and regulatory review.
Spirit filed for Chapter 11 protection Aug. 29, listing about $8.58 billion in assets and $8.1 billion in liabilities. The filing followed operational challenges including rising costs, aircraft groundings tied to Pratt & Whitney engine inspections, and the collapse of a proposed acquisition by JetBlue Airways, which a federal judge blocked on antitrust grounds.
Fee applications in court detail work by advisors including investment banks PJT Partners and Jefferies, as well as restructuring firms FTI Consulting, AlixPartners and Alton Aviation Consultancy, covering financing, asset sales, fleet issues and restructuring analysis.
A prior offer from rival Frontier Airlines in November was deemed unviable and too low, sources told Reuters.
Spirit has secured creditor-backed financing to continue operations, including a $100 million lifeline in December conditional on progress toward reorganization or a strategic transaction.
As of Thursday, no transaction involving Castlelake or any other party had been disclosed in court filings. The case remains ongoing, with a claims bar date set for Jan. 27.
Will we still have to pay extra for bringing a toothpick on board?
Spirit was the absolute worst.
they always target frum passengers