Spirit Airlines Inc (SAVEQ) has disclosed a new risk, in the Litigation & Legal Liabilities category.
Spirit Airlines Inc. faces significant business risks due to delays in their Chapter 11 bankruptcy proceedings, increasing the likelihood of unsuccessful reorganization and rising bankruptcy-related costs. Such delays may lead to negative publicity and strained relationships with creditors, employees, customers, and other crucial partners, worsening their operational and financial condition. Additionally, the requirement for Bankruptcy Court approval for non-routine transactions hinders their ability to swiftly address challenges or seize opportunities. Consequently, the uncertainty surrounding these proceedings casts doubt on the company’s ability to continue as a going concern.
Overall, Wall Street has a Strong Sell consensus rating on SAVEQ stock based on 4 Sells and 1 Hold.
To learn more about Spirit Airlines Inc’s risk factors, click here.
