Frontier Group Holdings Renews Bid for Spirit Airlines Merger
Frontier Group Holdings Inc. proposes a new merger with Spirit Airlines Inc., leveraging Frontier's debt and stock issuance. Frontier aims to persuade Spirit bondholders of its plan's superiority over bankruptcy restructuring, which it claims would create a debt-heavy, unprofitable airline.
Spirit dismisses the offer, deeming the terms unsatisfactory and rejecting bankruptcy alternatives. It intends to continue its Chapter 11 restructuring plan.
Frontier's previous merger pursuits before Spirit's bankruptcy filing ended unsuccessfully. Recently, Frontier shares experienced a 1.8% increase in pre-market trading in New York.