Spirit Airlines says rescue hearing delayed as talks continue

By David Shepardson

WASHINGTON, April 29 (Reuters) - ‌Spirit Airlines ​said no ​bankruptcy court hearing will take place on Thursday as discussions over the terms of a potential $500 million U.S. government rescue continue ‌with lenders.

The airline said on Wednesday in a court filing ⁠that talks were continuing and lenders have not filed a notice with a New York federal ‌court that could trigger a ‌liquidation of Spirit assets in seven business days.

President Donald Trump said last week his administration was looking at buying the embattled airline at the "right ​price."

The Florida-based budget carrier is running short on time. Spirit lawyer Marshall Huebner said last week Spirit quickly needs new financing or access to $240 ⁠million of its funds. The liquidation of Spirit would eliminate more than 17,000 jobs and generate billions ​of dollars in claims, he added.

A lawyer for Spirit creditors said last week they had reviewed a term sheet of ​the government's offer that sources say includes $500 million ‌in financing and a condition that the government receive warrants equal to 90% of Spirit's equity.

The senior debtor-in-possession financing would ⁠help Spirit exit its second bankruptcy restructuring since 2025.

Separately, budget airlines have asked the Trump administration for $2.5 billion in government aid to address the spike in jet fuel costs ⁠during the U.S.-Israeli war on Iran.

Transportation Secretary Sean Duffy said Congress would need to ​get involved in that request.

"I don't have that money - can't just pull it out of the couch cushions. There would have to be a lot of government engagement and a ‌bipartisan effort to find the funds for them. You can't snap your fingers," Duffy said Tuesday.

Asked about the prospect ‌of government assistance, JetBlue Airways CEO Joanna Geraghty said Tuesday the airline was focused ⁠on its turnaround plan but ‌added: "Never say never -- we're ​open to anything and everything, assuming the terms would make sense for JetBlue."

(Reporting by David Shepardson; Editing by Chris Reese and ‌Lincoln Feast.)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• ByteDance seeks $20 billion in its largest-ever offshore loan, Bloomberg News reports
• Dollar hits 13-month high as rate-hike bets, stock rout boost demand
• Russian-held Sevastopol, Moscow-controlled parts of Ukraine's Kherson grabble with power outages