President Donald Trump said on Friday that the U.S. gave Spirit Airlines a final bailout proposal to aid the beleaguered carrier.
Trump said, “we’re driving a tough deal,” and that “if we could do it, we’d do it. But only if it’s a good deal. He also said an announcement would be coming soon.
The budget airline most recently sought a lifeline from the U.S. government to the tune of $500 million. The Wall Street Journal reported on Friday that the airline is preparing to end operations after a deal could not be reached between certain bondholders and the government.
Sources later said the administration had proposed $500 million in financing in exchange for warrants equivalent to 90% of Spirit’s equity.
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There had been disagreements inside the Trump administration over whether and how to fund the bailout, the report said, citing people familiar with the matter.
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Not all Spirit bondholders were on board with the deal, the report added.
Trump previously said he was interested in helping the airline.
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“If we could get it for the right price, I’d do it to save the jobs,” he said during an event at the Oval Office last week.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FLYYQ | SPIRIT AVIATION HOLDINGS INC | 1.15 | -0.25 | -17.86% |
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Reuters contributed to this report.
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