Spirit Airlines has negotiated funding of up to $475 million with existing bondholders to support normal business operations during its Chapter 11 restructuring, its parent company said on Tuesday (30).

Spirit expects $200 million of the debtor-in-possession financing to be available immediately if the court approves.

The next hearing is scheduled for October 10.

The company has also got interim access to $120 million of liquidity, it said.

In August, the U.S. no-frills pioneer filed for bankruptcy protection for the second time in a year after a previous reorganization failed to put it on firmer financial footing.

Spirit said on Tuesday that it has agreed with aircraft lessor AerCap Holdings (AER.N), opens new tab to reject leases on 27 aircraft.

AerCap will pay Spirit $150 million as part of the deal.

The agreement resolves their dispute over a deal covering 36 Airbus planes due for delivery between 2027 and 2028.

The company also said it has got the U.S. Bankruptcy Court for the Southern District of New York's approval to reject 12 airport leases and 19 ground handling agreements.

Last week, Sprit had said it's halting 40 routes.

Source - Reuters