12:02 PM EST, 11/18/2024 (MT Newswires) -- (Updates to add the loyalty program status in the fourth paragraph and restructuring timeline in the sixth paragraph.)

Spirit Airlines ( SAVE ) said Monday it has entered into Chapter 11 bankruptcy restructuring with the support of a supermajority of its debtors.

The bankruptcy, filed with the US Bankruptcy Court for the Southern District of New York, will result in the likely delisting of the company from the New York Stock Exchange and the cancellation of its shares, the company said.

The discount airline said it has received commitments for $350 million in equity investments and $300 million in financing from existing debtors. The company will also equitize $795 million in debt.

The company said flights, ticket sales, and reservations as well as payments to employees, vendors, and secured debtors are to continue as normal during the bankruptcy proceedings. The airline's Free Spirit loyalty program and Saver$ Club perks and credit card terms for its customers will also continue, it added.

The restructuring of finances is meant to reduce debt, provide financial flexibility, and provide for investments in passenger services, the company said.

The company said it expects to complete the financial restructuring process in Q1 of 2025.

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