A U.S. bankruptcy judge on Thursday approved Spirit Airlines' debt restructuring, clearing the budget airline to convert $795 million in debt to equity and emerge from bankruptcy as a private company.

Spirit Airlines, Inc. ("Spirit" or the "Company") today announced the Company's Plan of Reorganization ("the Plan") was confirmed by the United States Bankruptcy Court for the Southern District of New York (the "Court").

Spirit Airlines’ (OTC:SAVEQ) plan to exit bankruptcy through a debt restructuring deal has been approved by a bankruptcy court that will transfer ownership of the beleaguered carrier to its majority lenders.