Bankrupt Spirit Air Rebuffs New Takeover Offer From Frontier

Bankrupt Spirit Airlines Inc. rejected a new acquisition offer from the parent of Frontier Airlines but said it remains open to a long-discussed combination of the budget carriers.

Frontier Group Holdings Inc. met with Spirit’s leaders in recent days to discuss a proposal that it values at about $2.2 billion, supported by the issuance of new Frontier debt and stock, according to a statement January 29. It’s seeking to convince Spirit bondholders that the plan is preferable to bankruptcy restructuring, which Frontier said would result in “an unprofitable airline with a high debt load.”

Spirit rebuffed the offer, ca…