Embattled Spirit Airlines has negotiated a multi-tranche debtor-in-possession (“DIP”) financing facility of up to $475 million from its existing bondholders.

The credit line will provide Spirit with additional financial flexibility to support normal business operations during its restructuring. The DIP financing is subject to Court approval, with a hearing scheduled for Oct. 10, 2025. $200 million is expected to be available immediately upon Court approval.

READ: Court allows Spirit Airlines to continue operations through Chapter 11

Additionally, Spirit has negotiated an agreement with Ireland-based AerCap, its largest aircraft lessor. Under the agreement, AerCap will pay Spirit $150 million. Spirit will reject leases on 27 aircraft, allowing the it to reduce operating costs by hundreds of millions of dollars. The proposed agreement (which is subject to court approval) also resolves all claims and disputes between AerCap and Spirit and provides for the future delivery of 30 aircraft.

The court has already approved Spirit’s plan to reject 12 airport leases and 19 ground handling agreements, which forms part of the overall restructure.

READ: Report finds Spirit Airlines has ‘significant structural and financial weaknesses’

Spirit also has engaged with trade unions to identify cost savings within the respective collective bargaining agreements.

“These are significant steps forward in a short period of time to build a stronger Spirit and secure a future with high-value travel options for American consumers,” said Dave Davis, President and Chief Executive Officer. “While there’s more work to be done, we’re grateful to our stakeholders who have stepped up to support us during the restructuring. We remain focused on delivering a safe, reliable operation, and I’m incredibly proud of our Team Members for continuing to rise to the occasion and take great care of our Guests.”