Spirit Airlines on the right track for a bankrupt buoy of $ 475 million

White Plains, NY – Spirit Airlines makes “massive progress” to revitalize the airline, said lawyer for the restructuring of the Marshall Huebner carrier during a legal hearing.

The Budget Airline in difficulty has entered into an agreement with some of its flows for financing for debtor in possession, a rescue buoy that bankrupt companies can use to continue to operate, as well as $ 150 million among a major plane, said Huebner. The agreements are subject to the approval of the court.

Spirit last month filed its second protection against the bankruptcy of chapter 11 in less than a year after high costs, a lower demand and a multitude of other persistent problems led to more than $ 250 million in losses after emerging from its first bankruptcy from March to June.

The carrier ran to reduce costs and recently announced its intention to reduce 40 routes and around a third of its on -board agents. The airline is in talks with the union of its pilots and is looking for around $ 100 million in cuts in this group. Last month, Spirit said he reduced all $ 275 million in his revolver.

Huebner, partner of Davis Polk & Wardwell, said on Tuesday in the American bankruptcy court that pessimistic persons about the prospects for the recovery of the carrier in difficulty should “say less” and observe what he does.

Spirit said on Tuesday that it now had immediate access to $ 120 million in liquidity after a request was granted to use cash guarantees.

Spirit plans to reject the leases on 27 airbus aircraft with a narrow body of the rental giant based in Ireland Aercap25 planes which are put to the earth or will be put to the earth for inspection due to a Pratt & Whitney Engine defect, Huebner said in court. Aercap will pay 150 million dollars in the context of the agreement, under which Spirit would claim to take delivery of 30 additional planes, said the company.

Aercap did not immediately comment on the plan.

Spirit said that he also planned to reject 12 airport leases and 19 soil management agreements while the carrier narrows to reduce the costs, a plan approved by the court.

Another hearing is scheduled for October 10. If the financing of the debtor in possession is approved, $ 200 million would be available immediately.

“These are important steps in a short time to build a stronger spirit and ensure a future with high -value travel options for American consumers,” Dave Davis, CEO of Spirit, said in a press release later on Tuesday. “Although there is more work to do, we are grateful to our stakeholders who intensified to support us during the restructuring.”

According to an ARCE management file, Ares Ameliancebernstein, Arena Capital and Pacific Investment Management Company, according to a file.

The competitors of the mind United Airlines,, Airlines Frontier,, JetBlue Airways And Allegiant Airlines announced new routes in the hope of capturing the customers of Spiring. The CEO of United, Scott Kirby, went further, saying earlier this month that he expects Spirit to do its doors.

Spirit has a hard time for years with an engine recall, an acquisition failed by JetBlue, higher costs and a change in consumer tastes for more high -end offers. The airline based in Dania Beach, Florida has changed its commercial strategy to offer high -end products in recent months.