Spirit Airlines prepares to shut down after Trump administration bailout falls throughSpirit Airlines is preparing to shut down after failing to secure the critical financial support from the government needed to keep operating.
The struggling budget airline had been negotiating with the Trump administration for a $500 million rescue package that would have provided cash in exchange for equity-like warrants, giving the government up to a 90 percent stake. However, the effort has stalled because Spirit has been unable to secure the necessary backing from bondholders and government stakeholders, people familiar with the matter told the Wall Street Journal Friday.
There were reportedly disagreements within the Trump administration over whether and how to fund the bailout, while not all Spirit bondholders were on board with the deal, either, the sources claimed.
However, President Donald Trump also told reporters in the Oval Office Friday that his administration offered a “final” bailout to Spirit, warning the carrier may be forced to liquidate without it.
“If we could do it, we’d do it, but only if it’s a good deal this weekend, because they haven’t gotten a deal looking at it,” Trump said, CNBC reports. “I said I’d like to save the jobs but we’ll have an announcement sometime today. ... We gave them a final proposal.”..............
https://www.yahoo.com/finance/economy/policy/articles/spirit-airlines-prepares-shut-down-152920940.html
