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In a plot twist worthy of a Hollywood script, Spirit Airlines, the self-proclaimed “no-frills” air transportation marvel, managed to kick its debt problem down the road yet again. This thrilling cliffhanger happened just hours before the deadline, proving once again that the airline industry is just a giant game of “pass the buck”—or in their case, “pass the bill.” You see, they reached an accord with their credit card processor, extending their refinancing timeline to December, because who doesn’t love a last-minute reprieve before financial doom?
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Spirit Airlines also humorously revealed that they had completely drained their $300 million revolving credit facility earlier this week, leaving not a single penny left to spare. But fear not! They’ll still end the year with a refreshing just-over $1 billion in liquidity, which is like finding a dollar in your pocket right before your college loans come due.
In the same juicy filing, Spirit was also quick to mention its ongoing “active and constructive discussions” with bondholders regarding their senior secured notes due in 2025, which generally translates to “We’re talking to them about how we can avoid declaring bankruptcy, hopefully over a pizza or a bottle of wine.” They’ve stretched this deadline trick like a season-ending finale of a reality TV show—and the ratings are in! Stock dipped to a new low of $1.50, down roughly 3%, reminding everyone that even in the world of stocks, no one likes a steep drop.
Now, as if that wasn’t enough drama for one airline, many of their planes have been grounded due to a Pratt & Whitney engine recall. Apparently, the engines decided they needed extended vacation days. In a beautiful irony, Spirit’s woes were only compounded by its planned acquisition by JetBlue Airways, which was sadly left at the altar after a federal judge, the ultimate party pooper, blocked the merger faster than you can say “antitrust.”
To add to this theatrical train wreck, shares have plummeted more than 90% this year alone, with a staggering almost 40% drop just in October! It’s like witnessing a company take a dive into a financial kiddie pool with no water and no way out.
And just when you thought you had heard it all, The Wall Street Journal mentioned earlier this month that Spirit is scratching its head over a possible bankruptcy filing—a plan that seems less like a strategy and more like a last-minute attempt to turn the ship around before it sinks into the sea of corporate despair. Spirit Airlines, always keeping us on the edge of our seats—just like that time you opted for the mystery meat on your last flight. Air travel, folks—nothing defines absurdity quite like it!
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