Patrick T. Collins Quoted by NBC News on Spirit Airlines Bankruptcy and Potential Liquidation

According to recent reports, Spirit Airlines may be nearing liquidation as it struggles with rising jet fuel costs, ongoing operational challenges, and a second bankruptcy filing in less than two years.

Bankruptcy & Restructuring partner Patrick T. Collins was recently quoted in an NBC News article examining the uncertain future of Spirit Airlines as the budget carrier faces mounting financial pressure.

From the article:

Bankruptcy lawyer Patrick Collins says for Spirit Airlines, the added strain from higher jet fuel prices may be the last straw.

 “Bankruptcy can give you a relief from your existing bills as of the date that you file, but companies that are in bankruptcy need to pay their new bills as they come due, and because of the increased price of fuel, [Spirit] may soon be unable to do that,” said Collins, a partner at the law firm Farrell Fritz.

 “If a company can’t pay its new bills as they go forward, and can’t find a way forward to confirm a plan, then that’s the kind of circumstance that leads to a liquidation,” he added.

 For now, Spirit Airlines is still selling tickets. And if Spirit is liquidated, Collins said it’s unclear what form that might take — though he anticipates Spirit would set an end date rather than ceasing operations immediately.

 “If a liquidation occurs, that’s what I would expect, that they would announce a date of a last flight and try to get other airlines that run between the same cities to honor the flights of the Spirit customers,” said Collins.

Read the article here: What to know if you plan to fly Spirit Airlines soon