{"id":1497542,"date":"2024-10-21T14:05:00","date_gmt":"2024-10-21T18:05:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1497542"},"modified":"2024-10-21T14:05:00","modified_gmt":"2024-10-21T18:05:00","slug":"spirit-air-squeezes-higher-on-key-debt-deadline-extension-cash-boost-averting-bankruptcy","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/spirit-air-squeezes-higher-on-key-debt-deadline-extension-cash-boost-averting-bankruptcy\/1497542\/","title":{"rendered":"Spirit Air Squeezes Higher On Key Debt Deadline Extension & Cash Boost, Averting Bankruptcy"},"content":{"rendered":"

Spirit Air Squeezes Higher On Key Debt Deadline Extension & Cash Boost, Averting Bankruptcy<\/span><\/p>\n

\n

Shares of\u00a0Spirit Airlines soared in\u00a0premarket trading in New York after the carrier reached an agreement with the US Bank National Association to extend a\u00a0debt-refinancing deadline to the end of 2024. The budget carrier also drained a\u00a0revolving credit facility for hundreds of millions of dollars, shoring up its balance sheet while delaying an imminent threat of bankruptcy.<\/p>\n

Spirit wrote in an 8-K filing<\/a> that the\u00a0deadline for refinancing $1.1 billion in debt had been pushed from Monday to Dec. 31. The refinancing is critical because it will determine if its\u00a0credit-card-processing agreement will be extended into 2025.\u00a0<\/p>\n

Also, in the filing, Spirit said it\u00a0drained a $300 million\u00a0revolving credit facility due September 2026. This will help the carrier cover short-term needs, such as\u00a0payroll, jet operations, and emergency expenses, averting a near-term bankruptcy filing.\u00a0<\/p>\n

“Consistent with its previously provided guidance, the Company expects to end the year 2024 with over $1.0 billion of liquidity, including unrestricted cash and cash equivalents, short-term investment securities and additional liquidity initiatives, assuming that the Company is able to close those initiatives that are currently in process,” Spirit said.\u00a0<\/p>\n

Shares jumped as much as 71% in premarket trading on the news. On the year, shares are down 91% (as of Friday’s close) after the carrier’s deal with JetBlue airways stalled.<\/p>\n

<\/a><\/p>\n

Bloomberg data shows 33% of the float is short, equivalent to about 35.7 million shares. This leaves about 7.8 days to cover.\u00a0<\/p>\n

<\/a><\/p>\n

Just weeks ago, The Wall Street Journal revealed that the struggling airline\u00a0has been in discussions<\/a> with bondholders about the possibility of a\u00a0bankruptcy filing following the\u00a0collapse of its merger with JetBlue Airways<\/a> in March.\u00a0<\/p>\n

<\/a><\/p>\n

Today’s news delays an imminent bankruptcy filing while stoking a squeeze in shares.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 10\/21\/2024 – 10:05<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/spirit-air-squeezes-key-debt-deadline-extension-cash-boost-averting-bankruptcy<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Spirit Air Squeezes Higher On Key Debt Deadline Extension & Cash Boost, Averting Bankruptcy Shares of\u00a0Spirit Airlines soared in\u00a0premarket trading in New York after the…<\/p>\n","protected":false},"author":0,"featured_media":1497543,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1497542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1497542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1497542"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1497542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1497543"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1497542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1497542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1497542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}