Overview
- Spirit, which disclosed Wednesday that a planned bankruptcy court hearing was postponed, is down to days of cash as talks over a $500 million federal lifeline have stalled.
- The draft plan would provide a government loan of about $500 million tied to warrants that could give Washington up to 90% ownership if exercised.
- Key creditors including Citadel, Ares Management and Cyrus Capital oppose the terms, with sources saying the government rejected a Citadel counterproposal.
- Separate from Spirit, a group of budget airlines requested $2.5 billion to blunt soaring jet-fuel costs that recently averaged about $4.10 a gallon, a spend that can approach one-third of airline expenses.
- Labor groups for Spirit employees urge an immediate loan with strict job protections, warning a collapse could erase thousands of paychecks, strand travelers at airports like Fort Lauderdale, and remove a low-fare check on prices.