A US bankruptcy court has approved a temporary lifeline for cash strapped Spirit Airlines.
It has granted the airline access to $275 million in emergency funds as it prepares to restructure its finances again.
US Bankruptcy Judge Sean Lane approved it, adding that it is ‘obviously necessary’ to ensure the airline can continue operating.
Spirit filed for Chapter 11 bankruptcy protection again on August 29.
This came just weeks after the airline warned it may struggle to continue long term without extra funding.
The airline recently announced it is cutting another dozen routes and could sell off more aircraft.
Spirit is having ‘productive discussions’ with bondholders and lenders.
“We are pleased to have reached this first milestone in our restructuring process, which will support normal operations as we take decisive actions,” Spirit CEO Dave Davis said. “
“With these approvals in place, we can continue to implement our transformation to build a stronger foundation.”
Spirit first exited bankruptcy in March but its restructuring then wasn’t radical enough.
