BofA moves to No Rating on Spirit Airlines as creditor negotiations continue
The Fly

BofA moves to No Rating on Spirit Airlines as creditor negotiations continue

BofA is moving to No Rating from Underperform on Spirit Airlines (SAVE) after recent SEC filings indicating that the company was unable to file its Q3 10-Q on time given ongoing creditor discussions. Spirit said that any definitive agreements with bondholders would be “effectuated through a statutory restructuring” that is expected to lead to the “cancellation of the Company’s existing equity,” notes the analyst, who also points out that The Wall Street Journal reported that merger talks with Frontier Airlines (ULCC) broke down as Spirit contemplates next steps ahead of the upcoming maturities. Spirit shares are no longer trading on fundamentals, the analyst tells investors.

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