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Esopus Creek Files Schedule 13D: 1.3M Shares of Spirit Aviation (FLYY), Seeks Examiner

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
SCHEDULE 13D

Rhea-AI Filing Summary

Esopus Creek Value Series Fund LP - Series A and related parties disclosed ownership of 1,300,000 shares of Spirit Aviation Holdings, Inc. common stock, representing approximately 5.0% of the 25,882,259 shares outstanding. The shares were acquired with approximately $690,406 of the fund's capital, including commissions, with two recent purchases: 500,000 shares on September 3, 2025 at $0.5379 per share and 800,000 shares on September 10, 2025 at $0.5012 per share. The filing states the Reporting Persons view the issuer as undervalued but express material concern that the company has filed for bankruptcy protection twice in rapid succession and that management has undermined shareholder value. The Reporting Persons seek appointment of an examiner in the bankruptcy process and reserve the right to engage with the company, buy or sell additional shares, or pursue other actions to protect their investment.

Positive

  • Established 5.0% ownership (1,300,000 shares) clearly disclosed
  • Transparent cost basis provided: approximately $690,406 aggregate, with per-trade prices of $0.5379 and $0.5012
  • Expressed constructive governance action by requesting an examiner to increase transparency during bankruptcy

Negative

  • Issuer has filed for bankruptcy protection twice, raising significant risk that equity value may be eroded or extinguished
  • Reporting Persons hold a non-controlling 5% stake, which limits unilateral ability to effect immediate board-level change
  • Potential dilution or liquidation risk inherent in ongoing bankruptcy proceedings as described by the filers

Insights

TL;DR: A 5% stake was acquired via two OTC purchases; investors signal activism due to serial bankruptcies and seek an examiner.

Esopus Creek Fund's 1.3 million-share position (approx. 5%) is a non-controlling but meaningful stake for a single investor in a small-cap issuer. The purchase prices ($0.5379 and $0.5012) and the disclosed $690,406 aggregate cost provide clear cost basis information. The filing frames the investment as opportunistic on perceived undervaluation while also explicitly positioning the Reporting Persons to push for governance oversight in bankruptcy through an examiner request. This combination of stake disclosure and stated intent increases the probability of engagement activity that could affect restructuring outcomes and potential recovery value for equity holders.

TL;DR: The filers are pushing for transparency in bankruptcy, asking the U.S. Trustee for an examiner to investigate management and insiders.

The Schedule 13D clearly articulates governance concerns tied to the issuer's two recent bankruptcy filings and explicitly requests the appointment of an examiner under 11 U.S.C. §1104. That request signals the Reporting Persons intend to escalate governance oversight and public disclosure of investigatory findings. While the 5% stake does not confer control, the public push for an examiner and stated willingness to engage with the board and other stakeholders could influence creditor and court perceptions during restructuring proceedings.






If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.

The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).






SCHEDULE 13D






SCHEDULE 13D






SCHEDULE 13D






SCHEDULE 13D


ESOPUS CREEK VALUE SERIES FUND LP - SERIES A
Signature:/s/ Andrew L. Sole
Name/Title:Andrew L. Sole, as Managing Member of Esopus Creek Advisors, LLC, the general partner of Esopus Creek Value Series Fund LP - Series A
Date:09/12/2025
Esopus Creek Advisors LLC
Signature:/s/ Andrew L. Sole
Name/Title:Andrew L. Sole, as Managing Member
Date:09/12/2025
Sole Andrew L.
Signature:/s/ Andrew L. Sole
Name/Title:Andrew L. Sole, a natural person
Date:09/12/2025

FAQ

What stake in Spirit Aviation Holdings, Inc. (FLYY) did Esopus Creek disclose?

Esopus Creek disclosed beneficial ownership of 1,300,000 shares, or approximately 5.0% of outstanding common stock.

How much did Esopus Creek pay for its shares in FLYY?

The aggregate funds used were approximately $690,406 including commissions; purchases included 500,000 shares at $0.5379 and 800,000 shares at $0.5012.

What governance actions did the reporting persons request regarding FLYY?

They requested the U.S. Trustee's Office seek appointment of an examiner to investigate management, insider conduct, and potential improprieties.

Did the filing indicate future trading intentions by Esopus Creek for FLYY?

Yes. The Reporting Persons stated they may increase or decrease their position, engage with management and the board, buy or sell shares, or pursue transactions to hedge or change economic exposure.

Were there recent transactions in the past 60 days for FLYY disclosed?

Yes. On September 3, 2025, 500,000 shares were purchased OTC at $0.5379; on September 10, 2025, 800,000 shares were purchased OTC at $0.5012.