A U.S. bankruptcy judge on Thursday approved Spirit Airlines' debt restructuring, clearing the budget airline to convert $795 million in debt to equity and emerge from bankruptcy as a private company.

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 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.

A U.S. bankruptcy judge approved Spirit Airlines' restructuring plan to emerge from Chapter 11 bankruptcy as a private company.

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’ (OTC:SAVEQ) plan to exit bankruptcy through a debt restructuring deal has been approved by a bankruptcy court that will transfer ownership of the beleaguered carrier to its majority lenders.

While the strong brand and loyal customer base make a full closure unlikely, the pool of investors who will be able to pull the struggling airline back on track is limited — and, now that Spirit has rejected a merger offer from Frontier ( FRON) for a second time, got even smaller.

Spirit Airlines’ plan of reorganization was confirmed by the United States Bankruptcy Court for the Southern District of New York. With this approval in place, the company expects to emerge from Chapter 11 in the coming weeks.

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.