Spirit Airlines on the way along a bankruptcy line of $ 475 million

White Plains, NY – Spirit Airlines is making “mass progress” to revitalize the airline, said Restructuring Lawyer Marshall Huebner at a judicial hearing on Tuesday.

The budget airline in difficulties has reached an agreement with some of its deptholders for up to $ 475 million in debtor financing in possession, a lifeguard that bankruptcy companies can use to continue operating, as well as $ 150 million of an important aircraft lessor, said Huebner. The agreements are subject to the approval of the court.

Last month, Spirit requested his second bankruptcy protection of Chapter 11 in less than a year after high costs, the weakest demand and a large number of other persistent problems promoted more than $ 250 million in losses since when he emerged from his first bankruptcy in March to June.

The carrier has been running to reduce costs and recently announced plans to reduce 40 routes and licenses around a third of their hostesses. The airline is in conversations with its pilot union and is looking for about $ 100 million in cuts in that group. Last month, Spirit said he was reducing all of the $ 275 million in his revolver.

Huebner, a partner of Davis Polk & Wardwell, said Tuesday at the United States bankruptcy court that people who are pessimistic about the perspectives of operator change must “say less” and observe what he is doing.

Spirit said Tuesday that he now has immediate access to $ 120 million in liquidity after a motion was granted to use cash guarantees.

Spirit plans to reject the leases in 27 Airbus narrow body aircraft of the Ireland headquarters with headquarters in Ireland Aercap25 of them planes that are grounded or will be grounded for inspection due to a Pratt and Whitney Motor defect, said Huebner in court. Aercap will pay Spirit $ 150 million as part of the agreement, under which Spirit would still plan to receive 30 more aircraft, the company said.

Aercap did not immediately comment on the plan.

Spirit said it also plans to reject 12 airport leases and 19 ground management agreements as the carrier is reduced to reduce costs, a plan that the court approved.

Another audience is scheduled for October 10. If the debtor financing is approved in possession, $ 200 million would be available immediately.

“These are significant steps forward in a short period of time to build a stronger spirit and ensure a future with high -value travel options for US consumers,” said Spirit Dave Davis CEO in a press release later on Tuesday. “While there is more work to do, we are grateful to our interested parties who have intensified to support us during the restructuring.”

Spirit guaranteed notes holders include Citadel Americas, Ares Management, Allianbernstein, Arena Capital Advisors and Pacific Investment Management Company, according to a judicial presentation.

Competitors of the spirit United Airlines, Borders, Jetblue Airways and Allegiant airlines They have announced new routes with the hope of capturing Spirit customers. The United CEO, Scott Kirby, was one step further, saying earlier this month that Spirit expects Spirit to go to the company.

Spirit has fought for years with a motor withdrawal, an acquisition failed by Jetblue, higher costs and a change in consumer tastes for more luxury offers. The Dania Beach -based airline, Florida, has altered its commercial strategy to offer high -end products in recent months.