Spirit Air says no plans for restructuring after JetBlue setback

Spirit Airlines downplayed speculation it’s planning a bankruptcy-driven restructuring even as the discount carrier reexamines its balance sheet following the collapse of a planned sale to JetBlue Airways Corp. “Spirit is not pursuing nor involved in a statutory restructuring,” the company said in an emailed statement late Thursday. The comment offers a glimpse into how the airline plans to navigate a heavy debt load and diminished prospects in the low-cost travel market. Spirit said earlier Thursday that it “has been taking, and will continue to take, prudent steps to ensure the strength” of its finances and ongoing operations. The carrier is weighing bond restructuring options and recently completed a sale-leaseback of aircraft that brought in cash. Spirit’s shares have been in a tailspin since the ruling, plunging 62% over the past three days. Wall Street analysts, including those from TD Cowen and Melius Research, have said Spirit could be forced into bankruptcy reorganization or even liquidation following this week’s court decision blocking the JetBlue deal. The carriers haven’t commented on whether they will appeal since saying shortly after the ruling that they disagreed with the finding and were considering options. <br/>