Spirit Pushes Restructuring Forward That Wipes Out Shareholders

Spirit Airlines Inc. said Tuesday it still expects shareholders will get wiped out in its bankruptcy as the carrier pushes forward with a restructuring deal that hands control of the airline to its bondholders.

The airline tried its best to avoid bankruptcy and filed Chapter 11 as a last resort after it failed to complete a merger with rival Frontier Group Holdings Inc. and exhausted all other restructuring options, Spirit lawyer Marshall Huebner said during a New York court hearing.

More than a dozen shareholder letters that have been submitted to Judge Sean Lane that criticize Spirit CEO Ted Christie ...