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.

“Today’s approval is a major milestone as we progress toward the successful conclusion of our in-court process,” Ted Christie, president and CEO of Spirit Airlines, said. “We will emerge as a stronger airline with the financial flexibility to continue providing guests with enhanced travel experiences and greater value. Throughout this process, we’ve had virtually unanimous support from our bondholders, who recognize Spirit’s value and potential. As we move forward, our leadership team remains focused on reducing costs while also advancing our strategic initiatives to transform our guest experience and position Spirit for success. I’m especially grateful for the dedication and unwavering commitment of our entire Spirit family, who continue their outstanding work to serve our guests and drive our business forward.”

Under the approved plan, Spirit will equitize $795 million of funded debt, receive $350 million of new equity investment and issue $840 million aggregate principal amount of new senior secured debt to existing bondholders upon emergence. In addition, Spirit will enter into a new revolving credit facility of up to $300 million. Spirit vendors, aircraft lessors and holders of secured aircraft indebtedness will not be impaired.