Back

Open Letter to the U.S. Trustee Representing Spirit Airlines Shareholders

Subject: Advocacy for Shareholder Equity in Spirit Airlines’ Chapter 11 Bankruptcy

Dear U.S. Trustee,

I am writing to express my deep concern regarding the proposed cancellation of shareholder equity by Spirit Airlines, as outlined in their recent Form 12b-25 released on November 12, 2024, and their subsequent filing for Chapter 11 bankruptcy protection on November 18, 2024. This abrupt and unexpected action has left many shareholders, including myself, facing significant financial losses and raises serious questions about fairness and corporate accountability.

As a shareholder, I respectfully urge you, as the U.S. Trustee representing Spirit Airlines stakeholders, to oppose the outright cancellation of equity and ensure that shareholders are afforded a fair and transparent resolution in accordance with Federal bankruptcy law.

Key Concerns:

1. Impact on Individual Investors: Thousands of individual investors placed their trust and resources in Spirit Airlines, believing in its leadership and long-term potential. The sudden decision to nullify equity holdings disproportionately impacts shareholders who have remained loyal to the company during challenging times.
2. Transparency and Governance: The lack of transparent communication from Spirit Airlines leading up to the bankruptcy filing has undermined confidence in the integrity of its corporate governance. Shareholders were not adequately informed of the company's financial struggles or potential bankruptcy considerations, despite assurances to the contrary from its leadership.
3. Fair Treatment Under the Law: Shareholders deserve to be treated equitably during bankruptcy proceedings. The complete cancellation of equity without exploring alternative solutions would set a troubling precedent and further erode trust in corporate accountability within the financial markets.

Advocacy for Shareholders:

I respectfully ask that you, as the U.S. Trustee, advocate for the following actions:

• A comprehensive review of the financial decisions leading to Spirit Airlines’ bankruptcy filing.
• Transparency in all proceedings, ensuring that shareholders are kept informed and given a fair opportunity to voice their concerns.
• Exploration of alternatives that could minimize the financial harm to shareholders, such as equity restructuring rather than outright cancellation.

Your role as U.S. Trustee is critical in upholding fairness and ensuring that the bankruptcy process does not unfairly disadvantage one group of stakeholders over another. Spirit Airlines shareholders deserve to be treated with the respect and consideration befitting their investment and trust in the company.

I, along with countless other shareholders, urge you to prioritize equity and fairness in these proceedings. The financial well-being of many individuals and the integrity of our financial system depend on it.

Thank you for your attention to this urgent matter. I look forward to seeing Spirit Airlines shareholders represented fairly in the ongoing bankruptcy process.

Sincerely,
Shareholder, Spirit Airlines

To contact the US Trustee for Region 2 send an email to ustp.region02@usdoj.gov
Back