April 28 (Reuters) – Spirit Airlines’ discussions over a potential $500 million U.S. government rescue financing have hit an impasse, Bloomberg News reported on Tuesday, citing sources. A group of lenders, including hedge fund Citadel, is pushing back against proposed terms that could significantly erode the value of their claims and limit recoveries, the report […]
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Spirit Airlines’ talks on $500 million US rescue financing stall, Bloomberg News reports
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April 28 (Reuters) – Spirit Airlines’ discussions over a potential $500 million U.S. government rescue financing have hit an impasse, Bloomberg News reported on Tuesday, citing sources.
A group of lenders, including hedge fund Citadel, is pushing back against proposed terms that could significantly erode the value of their claims and limit recoveries, the report said, adding that the group made a counterproposal in recent days that has gone unanswered.
Reuters could not immediately verify the report. Spirit and Citadel did not immediately respond to Reuters’ requests for comment.
The news on Spirit’s rescue financing hitting a roadblock comes hours after a report said the airline had won the backing of two of its three major creditor groupings to secure a bailout.
U.S. President Donald Trump said last week his administration was looking at buying the embattled airline at the “right price.”
If all the Spirit creditor groups agree on the bailout deal, a New York federal bankruptcy court hearing could be held on Thursday.
(Reporting by Carlos Méndez in Mexico City; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)