Spirit Aviation Holdings, Inc. has entered into a Restructuring Support Agreement (RSA) with certain holders of its new money term loans as part of its ongoing Chapter 11 bankruptcy proceedings. This agreement, finalized on March 13, 2026, involves approximately 74.6% of the aggregate principal amount of new money DIP loans and aims to facilitate the company's restructuring efforts. The RSA outlines the terms under which the company will utilize $150 million of encumbered cash to prepay a portion of its term loans, thereby improving its liquidity position during the bankruptcy process. Additionally, the agreement includes provisions for the issuance of new equity interests to creditors, which may dilute existing shareholders significantly. The restructuring plan is expected to be implemented through a proposed plan of reorganization, which remains subject to Bankruptcy Court approval. The company has also disclosed that all general unsecured claims will be canceled without any distributions to the holders, indicating a challenging recovery for existing shareholders. The restructuring process is critical for Spirit as it seeks to stabilize its operations and emerge from bankruptcy with a more sustainable capital structure.

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