Financially troubled Spirit Airlines says its reorganization plan has been approved by a federal bankruptcy court in New York, opening the way for its exit from Chapter 11 “in the coming

Spirit Airlines, Inc. received court approval for a $795 million funded debt equitizing plan on February 20, which the company expects to alleviate its Chapter 11 bankruptcy. After struggling to recover following the pandemic and a failed merger with JetBlue that was blocked by the federal government citing anti-competitive concerns,

Spirit’s approval comes after the third merger attempt by Denver-based ULCC Frontier Airlines, part of a back-and-forth process between the two budget carriers that dates back to 2022 when Frontier made a run for Spirit but was usurped by JetBlue.

Spirit Airlines has gotten the all clear to take off out of bankruptcy. A bankruptcy judge in New York approved the Broward-based airline’s plan this week.

Spirit Airlines (SAVEQ) garnered retail attention on Thursday after a court approved its plan to exit bankruptcy by converting $795 million in debt to equity and emerge as a privately owned company. The company said it expects to emerge from restructuring in the coming weeks following the approval of the United States Bankruptcy Court for the Southern District of New York to hand over the airline to creditors.