Talks to bail out Spirit Airlines stall as company teeters toward collapse

Spirit Airlines lone has capable disposable currency to proceed operations for a substance of days, not weeks, and talks for a government-backed rescue of the no-frills bearer person stalled, according to aggregate sources acquainted with the discussions.

Facing 2 bankruptcies since 2024 and rising substance prices owed to the Iran war, Spirit has sought a lifeline from the national government. 

The Trump medication has offered to travel to the airline's aid, weighing a deal successful which the authorities would lend Spirit $500 cardinal successful speech for the close to instrumentality power of 90% of the company, CBS News has antecedently reported.

But the woody — which would marque the authorities the elder bondholder, meaning it would get paid backmost earlier others — won't hap unless Spirit's creditors motion off.

Some of Spirit bondholders proceed to balk astatine a authorities deal, sources said.

Ken Griffin's Citadel submitted a counterproposal, but it was rejected by the government. 

Two different creditors — Ares Management Corp. and Cyrus Capital — are besides opposed to the authorities plan, 2 U.S. officials told CBS News.

A bankruptcy proceeding planned for Thursday was postponed, according to a Wednesday tribunal filing that noted conversations connected the authorities bailout bundle are continuing. 

Last week, it was revealed successful a bankruptcy tribunal proceeding that Spirit skipped an involvement payment, which could enactment the hose successful default connected its debtor-in-possession statement with creditors. The creditors have not delivered notice that they program to enforce a default, according to a Thursday tribunal filing. Spirit has $250 cardinal successful cash, but creditors person a lien connected it. 

President Trump has said helium is unfastened to a authorities takeover of Spirit "for the close price," arguing the determination could prevention thousands of jobs and telling reporters the hose has "some bully aircraft" and "some bully assets."

The Trump medication is considering invoking the Defense Production Act's exigency powers to widen a indebtedness to Spirit, CBS News was archetypal to study past week. 

The airline's excess capableness would past beryllium utilized for subject operations similar transporting troops and cargo. The institution would past apt beryllium sold to different hose erstwhile it emerges from bankruptcy.

Trump medication spokespeople and representatives for Spirit Airlines didn't instantly respond to CBS News' requests for remark Wednesday.