Spirit Airlines refuses to acquire another Frontier Airlines worth $21.6 billion
Points Guy founder Brian Kelly discusses how Spirit Airlines bankruptcy will affect travel.
- Spirit Airlines has rejected an acquisition offer worth approximately $2.16 billion from Frontier Group.
- Spirit and Frontier have held merger meetings since at least 2022, even before Spirit filed for bankruptcy in 2024.
- Spirit Airlines filed for bankruptcy due to long-term economic losses and substantial debt burden.
Spirit Airlines rejected the Frontier Group’s acquisition offer on Tuesday, worth around $2.16 billion, and bids from its fellow ultra-low-cost carriers are less beneficial to shareholders than ongoing restructuring plans. He said.
Frontier offer This is a recurring proposal from the beginning of this month, suggesting that Spirit shareholders would win $400 million in debt and 19% of shares.
However, Spirit completed the $350 million share rights offering and removed the requirement to use the proceeds to retire from the debtor’s owned facility. You will also be required to waive a $35 million cancellation fee approved by the Bankruptcy Court.
Spirit Airlines no longer allow passengers with inappropriate clothing or tattoos to fly
Spirit, that I filed for bankruptcy protection Last year, the restructuring is expected to be completed in the first quarter, saying the revised proposal did not address certain important risks and issues previously identified.
Spirit Airlines rejected the latest acquisition offer for Frontier Group worth approximately $2.16 billion on February 12, 2025. (Reuters/Mike Blake/File Photo/Reuters)
Instead, the Florida-based airline offered a counter-proposed proposal that would allow Spirit shareholders to win $600 million in debt and $1.185 billion in stock.
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The companies had been in merger talks since at least 2022, even before Spirit filed for bankruptcy due to a significant debt burden, and due to a longer period of financial losses.
However, the JetBlue Airways jumped into the fight and won. but The transaction was discarded After a US judge blocked it on anti-competition concerns.
Frontier revived its acquisition efforts earlier this year, but Spirit said the two companies were inferior to what they discussed last year, and Spirit asked for guarantees that the deal would close and Frontier would not leave. .