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Trump administration nears $500M rescue for Spirit Airlines

financeApr 22, 202622955

The Trump administration is in advanced talks to provide about a $500 million rescue package to Spirit Aviation Holdings Inc.'s bankruptcy estate, a plan that could leave the federal government owning up to 90 percent of Spirit Airlines. Spirit Aviation Holdings Inc. is in Chapter 11 and faces potential liquidation as jet fuel prices, driven higher by the U.S. war with Iran, have strained the carrier's finances. The capital infusion would aim to keep Spirit's flights operating while lawmakers and regulators weigh oversight and the value the government would receive for a controlling stake.

Key Highlights

Administration negotiating a roughly $500 million rescue for Spirit Airlines.
Deal could leave the U.S. government with up to 90 percent ownership.
Spirit in Chapter 11, facing liquidation risk as jet fuel costs climb.
3 sources
cnbc.comTrump administration in advanced talks for Spirit Airlines rescue package, source sayswsj.comExclusive | Trump Administration Nearing Rescue Deal for Spirit Airlinesbloomberg.comSpirit Airlines at Risk of Facing Liquidation as Fuel Costs Bite

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