Overview
- Spirit told a New York judge in a Wednesday filing that a Thursday bankruptcy hearing was postponed as talks with lenders and the White House continued, and multiple reports say the airline has only days of cash left.
- The administration’s term sheet would lend roughly $500 million in return for warrants that could give the government up to 90% ownership, putting taxpayers first in line to be repaid.
- A group of bondholders including Citadel, Ares Management and Cyrus Capital opposes those terms, and people familiar with the talks say a Citadel-led counterproposal was rejected by the government.
- Officials have weighed emergency tools such as the Defense Production Act and even a direct purchase, though Kevin Hassett said Thursday the negotiations with creditors are still ongoing.
- Unions warn that a collapse could cost about 14,000 jobs and cut low-fare options for travelers, while analysts say liquidation would reshape competition on many U.S. routes.