Cash strapped LCC Spirit Airlines has secured a significant financial lifeline.
The bankruptcy court approved $475 million in funds from its existing bondholders as it works through its latest Chapter 11 restructuring process.
The court agreed the $475 million in funds to keep its operations running.
Spirit also got approval to cancel nearly 30 aircraft leases with lessor AerCap.
This includes a $150 million payment from AerCap to Spirit.
This will save the airline ‘hundreds of millions’ it said recently.
“We are pleased to have reached another significant milestone in our restructuring, which represents continued progress toward securing a successful future,” said Dave Davis, Spirit’s president and CEO.
“With these approvals in place, we are better equipped to build a stronger airline.”
Spirit is in its second bankruptcy restructuring in less than a year.
The airline has slashed routes by about a quarter and furloughed hundreds of staff.
