Spirit Airlines (OTC:SAVEQ), Inc. (NYSE:SAVE) has been notified by NYSE Regulation of its imminent delisting from the New York Stock Exchange, as per a recent 8-K filing. The airline, which filed for Chapter 11 bankruptcy on November 18, 2024, saw its common stock suspended immediately and will begin trading on the OTC Pink Market under the ticker "SAVEQ".
The delisting comes after Spirit's voluntary reorganization under bankruptcy law, which NYSE Regulation cited as a reason for the airline's unsuitability for continued listing. The formal delisting will occur ten days after the filing of the Form 25 by NYSE Regulation, with the deregistration from Section 12(b) of the Securities Exchange Act effective 90 days later, unless the SEC determines otherwise.
Spirit Airlines, headquartered in Dania Beach, Florida, assures that this transition to the OTC market will not impact its business operations. However, the OTC Pink Market is a more limited market than the NYSE, which could result in a less liquid market for the company's stock. The airline has warned current and potential stockholders that the trading price of its common stock could be negatively affected.
The 8-K filing also includes forward-looking statements cautioning investors about the speculative nature of trading in the company's common stock during the Chapter 11 proceedings. The company emphasizes that the trading prices may not reflect the actual recovery, if any, for the holders of the common stock in the bankruptcy process.
Investors are advised to consider the risks associated with the Chapter 11 Case, as shareholders could face significant or complete loss depending on the outcomes of the proceedings. Spirit Airlines has not indicated any intention to appeal the NYSE's delisting decision.
This news article is based on information provided in a press release statement filed with the SEC.
InvestingPro Insights
As Spirit Airlines faces delisting from the NYSE and transitions to the OTC Pink Market, InvestingPro data provides additional context to the company's financial situation. The airline's market capitalization stands at $448.02 million, reflecting its current valuation amidst bankruptcy proceedings. Spirit's revenue for the last twelve months as of Q2 2024 was $215.24 million, with a concerning revenue growth decline of -14.04% over the same period.
InvestingPro Tips highlight the precarious position of Spirit Airlines:
1. The company's earnings growth has been lower than its 5-year average, aligning with the revenue decline mentioned in the article.
2. Spirit Airlines holds more cash than debt on its balance sheet, which could potentially provide some flexibility during the bankruptcy proceedings.
These insights underscore the challenges facing Spirit Airlines as it navigates Chapter 11 bankruptcy. Investors considering trading Spirit's stock on the OTC market should note that InvestingPro offers 11 additional tips for a more comprehensive analysis of the company's situation.
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