Spirit Airlines is on track to emerge from Chapter 11 bankruptcy thanks to the private takeover of multibillion-dollar bondholders like Ken Griffin's Citadel Advisors.

The United States Bankruptcy Court for the Southern District of New York approved the plan, which equitizes “$795 million of funded debt, receive $350 million in new equity investment and issue $840 million aggregate principal amount of new senior secured debt to existing bondholders upon emergence.”

A U.S. bankruptcy judge approved Spirit Airlines' restructuring plan to emerge from Chapter 11 bankruptcy as a private company.

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.