Spirit Aviation Seeks Cash Infusion, Stock Drops 10%

Spirit Aviation Holdings, the parent company of the low-cost airline Spirit Aviation, is currently exploring strategic alternatives following the failure of its recent financial restructuring efforts. The company has been grappling with cash shortages, which have raised doubts about its ability to continue operations.

In response to these challenges, Spirit Aviation has engaged financial advisory firm PJT Partners to assist in addressing its cash flow issues. Additionally, the company is collaborating with consulting firms FTI and Seabury Aviation Strategic Group to navigate its current financial difficulties.

The airline has issued a warning that without an infusion of cash, it may not be able to meet its debt obligations and could potentially cease operations within a year. This dire situation comes after Spirit Aviation filed for Chapter 11 bankruptcy protection in November of last year and emerged from the process in March of this year.

The company's struggles have led to a significant drop in its stock price, with shares falling by 10% in pre-market trading. This decline reflects investor concerns about the airline's financial stability and its ability to secure the necessary funding to sustain its operations.