Trump Administration Nearing Deal to Rescue Spirit Airlines
Photo Credit: A Spirit Airlines Airbus A320neo. Airbus / Airbus
Skift Take
The Trump administration is nearing a deal to bail out Spirit, which would provide the embattled ultra-low-cost carrier a lifeline after facing the possibility of liquidation.
The Trump administration is in advanced discussions to bail out Spirit Airlines, which is facing the possibility of liquidation during its second Chapter 11 bankruptcy, according to people familiar with the matter.
The sources confirmed to Skift that Spirit and the federal government are discussing a loan of up to as much as $500 million and the possibility of a significant government stake in the carrier. Under the terms being discussed, the senior financing arrangement would put the government ahead of other bondholders, but the terms are still subject to change, according to people familiar with the matter.
The Transportation and Commerce Departments have also been involved in the tal
