Spirit Airlines is facing mounting financial pressure, leading to layoffs, jet sales, and potential bankruptcy. The budget carrier is taking drastic cost-cutting measures, including reducing its workforce and selling 23 planes, as it struggles to recover from the COVID-19 pandemic and intense competition in the airline industry. While a merger with Frontier Airlines remains a possibility, the airline’s future hangs in the balance.
Frontier Group Holdings Inc. (ULCC) is reportedly considering a renewed acquisition of Spirit Airlines Inc. (SAVE) as the latter grapples with potential bankruptcy. This comes after Spirit’s failed merger with JetBlue and ongoing financial struggles. The deal, if it goes through, could be part of Spirit’s debt restructuring during bankruptcy proceedings.
The U.S. Trustee Program has filed a motion to dismiss Johnson & Johnson’s latest bankruptcy filing, which aims to settle over 60,000 talc-related lawsuits. The DOJ argues that this maneuver is a bad-faith attempt to avoid billions in liability, citing the company’s history of similar tactics. This move comes after Johnson & Johnson increased its settlement offer to $9 billion, but the DOJ believes the company is seeking a third-party release to shield itself from liability.
Caroline Ellison, former CEO of Alameda Research, has agreed to surrender most of her assets to settle a lawsuit filed by the FTX bankruptcy estate. The settlement follows Ellison’s sentencing to two years in prison for her role in the FTX collapse. This significant development marks a step towards recovering funds for FTX creditors and brings the exchange’s two-year bankruptcy process closer to closure.
The US Department of Justice has filed objections to Fisker’s bankruptcy liquidation plan, arguing that the EV maker cannot charge customers for repairs of safety-related issues identified with their vehicles. This objection follows similar concerns raised by the SEC regarding the lack of clarity about the transfer of Fisker’s records.
United Airlines stock rose on Friday as news broke that Spirit Airlines is in talks with bondholders about a potential bankruptcy filing. This development could significantly benefit United, as it could lead to a decrease in competition and an increase in demand for its flights.
Spirit Airlines is facing mounting financial pressure after its merger with JetBlue was blocked and it continues to report losses. The airline is now reportedly exploring bankruptcy as it seeks support from bondholders and creditors. Spirit’s stock has plummeted over 25% on the news.
Spirit Airlines is reportedly in talks with bondholders about a potential bankruptcy filing, as the budget carrier grapples with a significant debt burden and a failed merger with JetBlue. The airline’s financial struggles are further compounded by shrinking operations, engine issues, and regulatory challenges.
Morgan Stanley analyst Jens Spiess sees a bright future for LATAM Airlines, initiating coverage with an Overweight rating and a $40 price target. The analyst believes LATAM’s post-bankruptcy transformation, coupled with its strong profitability and exposure to under-penetrated markets, sets the stage for significant growth in the coming years.
FTT, the cryptocurrency token of the bankrupt exchange FTX, surged over 60% in a single day, defying the broader market downturn. The spike coincided with rumors of FTX beginning repayments to fraud victims, though these were later debunked. FTT’s sudden surge, despite having no current use, highlights the volatility of the crypto market and the potential impact of speculation.
