Frontier Airlines is making another attempt to acquire struggling rival Spirit Airlines. Frontier argued that a merger would be more beneficial for Spirit’s bondholders than the airline’s current standalone bankruptcy plan. Spirit’s CEO and chairman agreed that a merger with Frontier would create a strong competitor but rejected Frontier’s latest offer as inferior to prior discussions. Spirit plans to exit bankruptcy in the first quarter. Its plan would give creditors $840 million in secured notes and full equity. Frontier’s alternative proposal offers $400 million in notes, a 19% stake in a merged airline, and some recovery for Spirit shareholders.
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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Frontier Airlines is making another attempt to acquire struggling rival Spirit Airlines.
00:07Frontier argued that a merger would be more beneficial for Spirit's bondholders
00:11than the airline's current standalone bankruptcy plan.
00:14Spirit's CEO and chairman agreed that a merger with Frontier would create a strong competitor,
00:21but rejected Frontier's latest offer as inferior to prior discussions.
00:26Spirit plans to exit bankruptcy in the first quarter.
00:30It plans would give creditors $840 million in secure notes and full equity.
00:35Frontier's alternative proposal offers $400 million in notes,
00:38a 19% stake in the merged airline, and some recovery for Spirit shareholders.