May 5 (Reuters) – A lawyer for defunct Spirit Airlines said Tuesday that sharply higher jet fuel prices left “no remaining way out” of bankruptcy and forced the budget carrier’s shutdown as it seeks approval for an expedited plan to sell off assets and pay retention bonuses to remaining employees. Marshall Huebner, a lawyer for […]
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Spirit Airlines lawyer says high jet fuel prices left carrier no alternative but shutdown
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May 5 (Reuters) – A lawyer for defunct Spirit Airlines said Tuesday that sharply higher jet fuel prices left “no remaining way out” of bankruptcy and forced the budget carrier’s shutdown as it seeks approval for an expedited plan to sell off assets and pay retention bonuses to remaining employees.
Marshall Huebner, a lawyer for the airline, said at a U.S. Bankruptcy Court hearing, that the airline learned on Thursday afternoon that the government financing initiative would not be proceeding and apologized to customers on behalf of the carrier. The Trump administration had last month proposed a $500 million bailout to help Spirit exit bankruptcy.
(Reporting by Doyinsola Oladipo and David Shepardson)