Spirit Airlines Struggles to Reach Rescue Deal to Avoid Bankruptcy
- Months-long negotiations have yet to yield an agreement
- Time running short for budget air carrier to reach an accord
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Spirit Airlines’ efforts to restructure its debt and avoid filing for bankruptcy have hit a snag after months of talks with bondholders failed to result in a deal, according to people with knowledge of the matter.
The struggling air carrier is seeking new financing from its creditors, as well as an exchange that would extend its current debt, said the people, asking not to be identified because the talks are private. Terms that still need to be worked out include which assets bondholders would have a claim on and how much new financing would be provided, one of the people said.