Spirit Airlines in talks with bondholders over terms of potential bankruptcy filing, WSJ reports By Reuters
(Reuters) – Spirit Airlines is in talks with bondholders about the terms of a potential bankruptcy filing in the wake of its failed merger with JetBlue Airways (NASDAQ:), the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Spirit shares fell 18% in after-market trading.
Spirit Airlines (NYSE:) did not immediately respond to Reuters’ request for comment.
The budget carrier was also exploring restructuring its balance sheet through an out-of-court deal, although recent talks have focused more on reaching an agreement with bondholders and other creditors to support a Chapter 11 filing, the report added.
The timing of such a filing, if it occurs, would not be imminent, the WSJ report said.
In June, CEO Ted Christie said the airlines were not considering Chapter 11 bankruptcy and were “encouraged” by the plan they had in place after the deal with JetBlue fell through.
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