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FGS Global represents Spirit Airlines as the low-cost carrier pioneer files for Chapter 11 protection to reduce debt and provide for financial flexibility.
The move follows a decision by a federal judge earlier this year to block Spirit’s merger with JetBlue, and the negative impact of an engine recall by Pratt & Whitney.
The Florida-based carrier lost $335M on $2.5B revenues during the first half of 2024.
Spirit said the restructuring pact will trigger a $350 million equity investment from existing bondholders, and deleverage $795M in unfunded debt.
CEO Ted Christie called the agreement with bondholders on a comprehensive capitalization a strong vote of confidence in the airline and its long-term plan.
The financial overhaul will strengthen its balance sheet and position Spirit for the future, while it executes on strategic initiatives to transform the guest experience, and provide new enhanced travel options, according to Christie.
Spirit hopes to emerge from Chapter 11 during the first quarter of next year.
Stagwell CEO Mark Penn reports Q3 net revenues jumped 6 percent to $614.5M, a record performance for a non-political period. Operating income soared 45.7 percent to $60.9M.
Joele Frank works for Klöckner Pentaplast as the German maker of plastic films declares Chapter 11. A successful reorganization would slash its its corporate debt by $1.5B.
Teneo represents Metsera, the New York City biotech focused on weight-control products, which is subject to a bidding war between heavyweights Novo Nordisk and Pfizer.
Haggie Partners is working the $7B takeover of the specialty insurer Convex by Canada’s Onex private equity fund and American International Group.
WPP reported Q3 revenues less pass-through costs tumbled 5.9 percent to $3.3B, a performance new CEO Cindy Rose called “unacceptable.”
