Spirit Airlines rejected Frontier Airlines’ latest takeover bid on Feb. 11, instead deciding to restructure after filing for Chapter 11 bankruptcy last year.
The Florida-based company said Frontier’s offer, worth $2.6 billion, was less beneficial to Spirit shareholders than its ongoing reorganization plan.
After Spirit rejected an offer in late January, Frontier submitted a new proposal on Feb. 4, promising Spirit shareholders $400 million in debt and a 19 percent stake in its parent company, Frontier Group Holdings.
The Denver-based Frontier’s offer lacked requirements for Spirit to complete a $350 million equity rights offering, while also waiving the $35 million termination fee that would be owed under a Backstop Commitment Agreement….