The bankruptcy spiritual air rejects the new acquisition offer of Frontier

(Bloomberg) -ThPrupt Spirit Airlines Inc. (BUTHPRUPT Spirit Airlines Inc.) rejected Frontier Airline’s parents’ new acquisition offer, but said it can still be combined with the long -term discussion of budget operators.

According to a statement on Wednesday, Frontier Group Holdings Inc. has met with Spirit’s leaders in recent days and discussed a proposal, that is, with the support of issuing new Frontier debt and stocks, it is worth about $ 2.2 billion. It tries to persuade psychiatric bond holders, and the plan is more desirable than bankruptcy reorganization. FRONTIER said that this will lead to “an airline with high debt burden.”

The spirit rejected the proposal, saying the word “inadequate and unable to perform”. The company stated in a regulatory document that it will continue to pursue the reorganization plan through bankruptcy, but it is also “happy to consider” to solve the lack of revised bids.

The previously disclosed talks began a letter from Frontier on January 7, and the pioneers who traveled to two deep -ticketing air trips have been revived for many years. Frontier agreed to buy the spirit in 2022, and then JetBlue Airways Corp. put forward a larger offer. According to Bloomberg, on the basis of anti -Torais, after the transaction of Jielan Airlines was blocked, Frontier pursued his spirit again, but the conversation last year broke.

Operators believe that in the face of serious challenges in the market, the Federation can strengthen its business. Since the popularity, with the increase in competition in large competitors, this market has been suffering. As consumers are looking for more high -end choices, the border and spirit have been adjusting their business model to increase advanced products.

Bill Franke, chairman of Frontier, said in a statement that mergers will have “long -term feasibility and can compete more effectively.” The airline is ready to continue the discussion and believes that new transactions can be agreed.

Frontier’s stock price rose 1.9 % in New York on Wednesday at 9:37 am.

After the failed JetBlue transaction, Spirit carried out Chapter 11 in November in November.

As spiritual preparation stands out of bankruptcy, the new bid may be in the first quarter. The hearing of its reorganization plan was delayed until February 13, starting from Wednesday so that the carrier had time to consider the proposal.

Spirit’s bankruptcy plan will control the carrier to his bond holder and eliminate the existing rights and interests of shareholders without compensation.

The airline said it rejected the latest border offer, partly because the bill holder must invest 350 million US dollars. The bid also requires supervision and court approval, as well as $ 35 million reserve fees.

Spirit CEO Ted Christie and Mac Gardner said in a letter to Frontier that Frontier’s proposal was “risks and expensive, there was no certain time or result, Insufficient financial situation.

(Update with spirit, border reviews and other details.)

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