April 28 (Reuters) – Spirit Airlines has won the backing of two of its three major creditor groupings needed to secure a $500 million bailout from the Trump administration, the Financial Times reported on Tuesday, citing two people close to the talks.
Holders of a $275 million credit facility and a separate committee of unsecured creditors that holds billions of dollars of junior claims, are willing to sign off on U.S. President Donald Trump’s offer of federal financing, the report said.
The top two holders of Spirit senior secured notes are Ken Griffin’s Citadel Americas and Cyrus Capital. Other holders include Ares, Pimco and Arena Capital, the report added.
Trump said last week his administration was looking at buying the embattled airline at the “right price.”
“When the price of oil goes down, we would sell it for a profit,” he told reporters at the White House.
Spirit Airlines did not immediately respond to a Reuters’ request for comment.
If all the Spirit creditor groups agree on the bailout deal, a New York federal bankruptcy court hearing could be held on Thursday.
Reuters reported last week that the Trump administration was nearing a deal to rescue the low-cost carrier that could include up to $500 million in government-backed financing.
The package would likely be a loan to keep Spirit running during bankruptcy, which would later become a longer-term loan when the airline exits bankruptcy, with warrants giving the U.S. government a potential stake of up to 90%, sources told Reuters.
(Reporting by Akanksha Khushi in Bengaluru; Editing by Subhranshu Sahu)
