Talks to bail out Spirit Airlines stall as company teeters toward collapse
CBS News • • business
Key Points:
- Spirit Airlines has only enough cash to continue operations for a few days, with government-backed rescue talks currently stalled due to creditor opposition.
- The Trump administration proposed a $500 million loan for a 90% government stake, but some major creditors, including Citadel, Ares Management, and Cyrus Capital, oppose the deal.
- A bankruptcy hearing was postponed as discussions continue, with Spirit having missed an interest payment that could trigger a default, although creditors have not yet enforced it.
- The administration is considering using the Defense Production Act to provide emergency funding, intending to use Spirit's capacity for military transport before potentially selling the airline post-bankruptcy.
- President Trump expressed openness to a government takeover "for the right price," highlighting the potential to save jobs and the value of Spirit's assets amid its ongoing restructuring.
