- Spirit Airlines is reportedly preparing to shut down after efforts to save the struggling budget carrier fell apart.
- The Wall Street Journal reported Friday that the airline was hoping a $500 million lifeline from the government would come through before it ran out of cash but it hasn’t been able to secure the funding to keep it in business.
- The carrier announced Thursday that a bankruptcy court hearing would not proceed as the airline continued negotiations with lenders regarding the potential U.S. government rescue package.
- Lenders had refrained from filing a notice that could initiate the liquidation of Spirit's assets within seven business days, indicating ongoing discussions and a temporary halt to immediate liquidation proceedings.
- Spirit's legal counsel highlighted a critical need for immediate new financing or access to $240 million of its existing funds, warning that liquidation would result in the loss of over 17,000 jobs and billions of dollars in claims.
IN FULL
Spirit Airlines prepares to shut down after Trump administration bailout falls through
