Spirit Airlines, fighting to stay alive, is exploring another potential restructuring after having emerged from Chapter 11 bankruptcy in March, reports the Wall Street Journal.
Also, the airline is working with financial adviser PJT Partners and consulting firms FTI and Seabury Airline Group in considering its options, the WSJ said.
Spirit declined to comment on the WSJ report.
"We remain hard at work on many initiatives to protect our business, valued team members, partners and guests," a spokesperson said in an email. "Our focus is on making the necessary changes to better position the company and build a stronger airline. Our guests can continue to book and travel with us with confidence."
Also, Spirit has made recent moves to improve liquidity. In an Aug. 21 regulatory filing, Spirit revealed the airline borrowed the full $275 million available under a revolving loan agreement. Spirit also extended its card-processing agreement with U.S. Bank by two years, but at a cost. U.S. Bank can now hold back up to $3 million per day in card payments as collateral in case of a Spirit collapse.
Earlier this month, Spirit had noted that restructuring its card-processing agreement would be critical to survival, since the airline was at risk in the coming months of falling out of compliance with liquidity requirements.
Spirit's latest maneuvering follows its Aug. 11 regulatory filing warning of a potential closure within 12 months if financial results don't improve.
Spirit entered this year with $902.1 million in unrestricted cash and cash equivalents, but the figure had dwindled to $407.5 million by June 30 following a second-quarter net loss of $245 million.
The company has said it would bolster liquidity through the sale of real estate, aircraft and excess gate capacity. Already since June 30, Spirit has sold 14 of the 32 spare engines it owns, for a total of $250 million.