Davis Polk partner and Restructuring practice co-head Marshall Huebner discussed his work as lead counsel to Spirit Airlines on its chapter 11 restructuring with Law.com.

Spirit Airlines emerged from chapter 11 just four months after filing, which is unprecedented. “We had to get court and creditor approval for a full plan and disclosure statement, which often takes at least a year – no one’s ever done it faster than we have,” Marshall said. “That’s what made this case so different.”

Marshall noted that his experience leading the successful chapter 11 filings of other airlines, including Delta, Frontier and Aeroméxico proved to be essential in this case. “I’ve done a very material amount of airline work for both carriers and their creditors over the last quarter of a century. Having an extremely deep understanding of the industry and what will work and what won’t is part of what sets us apart,” he explained.

Marshall added that the secret to resolving extremely complex matters like this is to do an incredible amount of careful listening before speaking and designing. “Figuring out what was going to work best for this situation, with its multiple constituencies, including large groups of both secured and unsecured noteholders, was critical, and we laid the groundwork for the restructuring long before we ever filed,” he noted. “To take a multi-billion dollar company from the petition date to a confirmation hearing in 87 days, including having to solicit public securities holders, is simply without precedent.”

When asked what his proudest moment in this case was, Marshall noted that there were two highlights. “First, bankruptcies have gotten extraordinarily expensive. Getting this done in under 90 days saved Spirit well over $100 million and a lot of risk, and positions it well for future success,” Marshall said. “We were unrelenting in our focus on speed and efficiency. Second, the US Trustee and the SEC both objected to our form of plan releases. We knew they were wrong on both the facts and the law. The Court’s 47-page opinion entirely in our favor, following almost four hours of intense oral argument, made important law and was a complete vindication. Sometimes, even we can’t settle. Then we litigate – and win.”

“Spirit Springs From Bankruptcy: Firm Guides Rapid Airline Restructuring,” Law.com (March 13, 2025) (subscription required) 

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