The shareholder accused Christie of causing harm to retail investors, saying his leadership had previously wiped out investments during Pinnacle Airlines' Chapter 11 process. They claimed that Christie is now using bankruptcy laws at Spirit Airlines to eliminate equity holders and damage investors' life savings.
The letter also expressed frustration over substantial bonuses awarded to executives amid financial distress. According to an SEC filing on November 18, Spirit will pay $5.3 million in retention awards to five top executives, including $3 million for Christie and $850,000 for COO John Bendoraitis.
“This gross enrichment of the very people responsible for Spirit’s financial collapse has come directly at the expense of shareholders who trusted the company with their life savings,” said the shareholder.
Questions were also raised about Spirit's decision-making regarding cash from asset sales and investments in its global headquarters near Fort Lauderdale-Hollywood International Airport (FLL). The shareholder argued these moves could have been planned to eliminate shareholders before merging with another airline.
Spirit Airlines disclosed it ended Q3 with $593.6 million in cash reserves and faced significant debt repayments before declaring bankruptcy. A thorough investigation into Christie's actions was demanded by the shareholder, who alleged that the bankruptcy was premeditated.
Expressing personal losses due to these developments, they shared open letters addressed to Christie and the US Trustee Program online, stating their belief that they would lose their entire investment under current plans. With ownership of 18,417 shares before delisting from NYSE following bankruptcy proceedings, they held a 0.01% stake in Spirit Airlines.
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