Spirit agrees Chapter 11 exit plan

BY Richard Summerfield

Spirit Airlines expects to emerge from Chapter 11 bankruptcy in late spring or early summer after reaching an agreement in principle with its existing debtor‑in‑possession lenders and secured noteholders. According to a company statement, this agreement will provide the financial support required to complete its restructuring and finalise changes intended to optimise its fleet, network and cost base. Spirit aims to return to the market as a strengthened low‑cost carrier offering both basic and premium options at the lowest possible fares.

Following its second bankruptcy filing in a year, the airline intends to reshape its business by expanding premium seating and focusing on routes with consistently strong demand. Under the restructuring plan, Spirit estimates that its debt and lease obligations will fall from $7.4bn to $2.1bn dollars. Spirit’s lawyer, Marshall Huebner of Davis Polk, confirmed that secured lenders will also release cash collateral to provide additional liquidity. The company entered bankruptcy again in August after experiencing falling cash reserves and ongoing losses.

“This agreement in principle is the result of months of hard work and allows Spirit to move toward completing its transformation,” said Dave Davis, president and chief executive of Spirit. “Spirit will emerge as a strong, leaner competitor that is positioned to profitably deliver the value American consumers expect at a price they want to pay.

“I am grateful to our Team Members for their dedication and unwavering commitment to our Guests throughout our restructuring. I also want to thank our Guests for continuing to choose Spirit to connect them to the people and places that matter most,” he added.

As part of its recovery, Spirit will reconfigure its schedule to increase aircraft utilisation during peak periods and on consistently popular routes, while reducing activity during times of lower demand. The carrier also plans to expand Spirit First and premium economy offerings and make improvements to its loyalty programme. Much of the future fleet will consist of older Airbus aircraft. Mr Huebner stated that annual fleet costs are expected to fall by $550m, a reduction of around 65 percent compared with levels before last year’s bankruptcy filing. The airline’s debtors are also pursuing a further $300m in non‑fleet cost savings.

To contain expenses during restructuring, Spirit has already reduced the size of its Airbus fleet and furloughed pilots and flight attendants, some of whom have since been recalled. The airline has faced persistent financial pressure as a result of a major Pratt & Whitney engine recall and the collapse of a planned acquisition by JetBlue Airways, which was blocked by a federal judge in early 2024.

Although Spirit forecast a net profit of $252m for 2025 in a December 2024 court filing, it reported losses of nearly $257m between 13 March 2025, when it exited its first Chapter 11 process, and the end of June. The company filed for bankruptcy protection for a second time shortly afterwards.

News: Spirit seals deal with lenders to emerge from bankruptcy as smaller airline

North Star Health Alliance files for Chapter 11

BY Fraser Tennant

Following a dispute with the New York State Department of Health over missing financial disclosures, home healthcare agency the North Star Health Alliance (NSHA), and three of its affiliates, has filed for Chapter 11 bankruptcy protection.

The decision to file was driven by complex events that generated a gap between the cost of services rendered and revenue received – a gap caused by, among other things, delays in payments while transitioning to a critical access hospital reimbursement model, increased operating expenses and multiple cyber attacks.

In addition to over 120 job cuts and the inoperability of several local clinics, the severe financial instability experienced by the NSHA in recent months also led to the resignation of its chief executive.

The Chapter 11 filing will allow the NSHA to commence a bankruptcy court restructuring process for itself and affiliates Carthage Area Hospital, Claxton-Hepburn Medical Center in Ogdensburg, and Meadowbrook Terrace, an assisted living facility in Carthage. 

The restructuring process is being undertaken as a voluntary, strategic and proactive action to realign financial obligations, ensure long‑term sustainability, and preserve the NSHA’s deep community roots and ability to provide quality healthcare. The NSHA plans to keep its hospitals and clinics open during the restructuring.

“We are taking this step to safeguard what matters most: quality driven care available close to home and the preservation of essential healthcare careers that support local families and anchor our North Country economy,” said Chet Truskowski, chairman of the NSHA board. “This court‑supervised restructuring puts us on a path to stabilise our finances while preserving essential services and protecting our workforce.”

The NHSA has stated that patients and their families can expect normal operations, access to appointments and continuity of all essential medical, surgical, behavioural health and assisted living services. In addition, employees will continue to receive regular pay and benefits throughout the Chapter 11 process.

“Providing for our patients and their families, caregivers and our staff that make up our community, is central to our mission,” concluded Mr Truskowski. “The Chapter 11 process is designed to ensure we can continue serving our neighbours for years to come.”

News: North Star Health Alliance files for Chapter 11 bankruptcy

Store operator of Eddie Bauer files for Chapter 11 bankruptcy

BY Richard Summerfield

Eddie Bauer LLC, operator of Eddie Bauer stores in the US and Canada and a licensee of the Eddie Bauer brand, filed for Chapter 11 bankruptcy protection on Monday, 9 February 2026, in the US Bankruptcy Court for the District of New Jersey. The company cited declining sales and supply chain challenges and outlined a court‑supervised process to solicit bids for approximately 175 to 180 stores while maintaining operations during the case.

The company has filed customary motions seeking ‘first day’ relief, including approval to use cash collateral to pay wages and benefits in the ordinary course and to fund operations through Chapter 11. The filing is the third insolvency for the Eddie Bauer business in just over two decades, following a 2003 case tied to Spiegel Inc and a 2009 restructuring that culminated in a sale to Golden Gate Capital. In 2021, the operating company was sold to SPARC Group Holdings and the brand’s intellectual property to an affiliate of Authentic Brands Group.

In January 2025, SPARC Group and JCPenney combined to form Catalyst Brands, which licensed North American brick‑and‑mortar retail rights to Eddie Bauer from Authentic. According to the filing, Eddie Bauer retail locations outside the US and Canada are operated by other licensees, are not included in the Chapter 11 proceedings, and will continue to trade in the ordinary course. Court papers indicate total funded debt of about $1.7bn.

The company said its financial headwinds were exacerbated by tariff uncertainty and inflation, alongside weaker demand for outdoor apparel since the pandemic surge. Throughout the Chapter 11 process, most retail and outlet stores will remain open. The company has commenced store‑closing sales at many locations while running a sale process. If a buyer for part or all of the retail footprint does not emerge, the US and Canadian stores operated by the LLC could close. The company is currently unable to provide a timetable for individual closures. The operations of other brands in the Catalyst Brands portfolio are not affected and continue in the normal course, according to a statement announcing the filing.

“Even prior to the inception of Catalyst Brands last year, the Retail Company was in a challenged situation, with declining sales, supply chain challenges and other issues,” said Marc Rosen, chief executive of Catalyst Brands. “Over the past year, these challenges have been exacerbated by various headwinds, including increased costs of doing business due to inflation, ongoing tariff uncertainty, and other factors. While the leadership team at Catalyst was able to make significant strides in the brand, including rapid improvements in product development and marketing, those changes could not be implemented fast enough to fully address the challenges created over several years.”

Mr Rosen explained that the Retail Company had explored all available options and taken steps to strengthen its future prospects, including transferring its e‑commerce and wholesale operations to Outdoor 5 LLC. After extensive consideration, the company decided to file for Chapter 11 in order to carry out a court‑supervised sale process and seek a buyer willing to keep the business operating. He noted that if such an agreement cannot be reached, the company will proceed with an orderly wind‑down of its store operations.

Mr Rosen also acknowledged that the decision was difficult and expressed appreciation for the loyalty and trust shown by the Retail Company’s employees and customers. He said the organisation is working to limit the impact on staff, vendors, customers and other stakeholders. He added that, despite the challenges, the restructuring represents the most effective path to protect stakeholder value while ensuring that Catalyst Brands remains profitable with strong liquidity and cash flow.

Eddie Bauer LLC operates about 175 stores across 40 states and Canada and employs roughly 2200 people. The company benefitted from renewed interest in the outdoors during the pandemic and posted positive earnings before interest, taxes, depreciation and amortisation of $21m during the last eight months of 2021; however, its resurgence did not last. The company lost $2m in 2022, $10m in 2023, $82m in 2024 and $80m in 2025.

News: Eddie Bauer store operator files for bankruptcy, seeks sale

Klöckner Pentaplast emerges from Chapter 11

BY Fraser Tennant

With the support of new ownership and a significantly strengthened financial foundation, plastic packaging products manufacturer Klöckner Pentaplast (kp) has successfully completed its restructuring and emerged from Chapter 11 bankruptcy. 

The company’s exit from Chapter 11 – a process commenced after the company entered a restructuring support agreement with most of its financial stakeholders in November 2025 – follows an injection of €349m in new capital as part of its plans to stabilise ongoing operations.

With the financial restructuring process concluded, kp emerges having eliminated approximately €1.3bn of funded debt. Thus, with a significantly strengthened balance sheet and enhanced financial flexibility, kp enters its next phase with confidence and is well prepared to drive results.

“We emerge from the Chapter 11 process as a financially stronger company,” said Roberto Villaquiran, chief executive of kp. “I am energised by the opportunities ahead, and I am highly confident that our talented teams will continue to build on our leading product portfolio and global presence.”

In connection with its emergence, kp has executed a transition of ownership of the company to a group of its financial partners led by funds affiliated with Redwood Capital Management, LLC. The new ownership structure has seen Mr Villaquiran and Michael Kaufman, a partner at Redwood Capital Management, appointed to kp’s board of directors, while industry leader Andrew Berlin is expected to be appointed to the board as chairman in the near term.

“We are grateful for the support of our new owners, who continue to demonstrate their confidence in our business and future prospects as we deliver innovative and sustainable packaging and film solutions to customers globally,” added Mr Villaquiran.

Founded in 1965, kp has 27 plants in 16 countries and employs over 5000 people committed to serving customers worldwide in over 60 locations. Having celebrated its 60th anniversary in 2025, the company remains focused on meeting and exceeding customer expectations with agility and excellence, while helping support the transition to a more circular economy.

I am proud of our dedicated employees for their relentless commitment to providing excellent service for our customers,” concluded Mr Villaquiran. “We also appreciate our global customers, vendors, suppliers and business partners for their tremendous support, and look forward to working together as we embrace a new chapter of partnership and value creation.”

News: Klöckner Pentaplast cuts €1.3bn in debt through Chapter 11 restructuring

Solar firm Pine Gate Renewables files for Chapter 11

BY Fraser Tennant

To facilitate a sales process and maximise value for its stakeholders, US solar developer Pine Gate Renewables and certain of its subsidiaries has filed for Chapter 11 bankruptcy.

One of the leading solar development firms in the US with more than 30 gigawatts of solar power in development, Pine Gate Renewables employs over 300 people and has developed over 100 new solar facilities since its founding in 2016.

The North Carolina-based company is the largest renewables developer to collapse in the aftermath of US President Donald Trump’s cuts to solar and wind tax credits. As a result, the company is pursuing a strategic and value-maximising sales process for substantially all of its assets and business operations.

ACT Power Services, Pine Gate’s wholly-owned operations and maintenance provider, is not part of the Chapter 11 process. Pine Gate is, however, in active discussions with multiple interested parties to identify a value-maximising sale transaction for the ACT business.

During the court-supervised sales process, Pine Gate and ACT Power Services will continue to support their project partners and advance projects currently in development and under construction. Pine Gate’s operational projects will also continue to generate and sell power.

“Since our founding, Pine Gate has grown tremendously, deploying innovative solar and energy storage projects at scale that enable us to deliver renewable, reliable and affordable energy,” said Ben Catt, chief executive of Pine Gate. “To ensure that our projects continue generating renewable energy, we made the strategic decision to commence a court-supervised sales process.”

To support the company through the bankruptcy process, Pine Gate has secured financing commitments from certain of its current lenders that will be used to support operations, including the advancement of projects in development and under construction.

“With significant financial support from certain of our current lenders, we are confident that we will successfully conduct a competitive sales process that reflects the inherent value of our nationwide portfolio of solar and energy storage projects,” added Mr Catt.

Pine Gate expects to complete the sales process, which will provide interested parties the opportunity to submit competing bids for the company and its assets, in approximately 45 days.

Mr Catt concluded: “As we move through the Chapter 11 process, we remain committed to supporting our valued project partners across our more than 100 operational solar facilities and forging ahead with our projects in development and under construction.”

News: Solar power producer Pine Gate blames Trump’s cuts in bankruptcy