Spirit Airlines prepares to shut down after Trump bailout falls through

The struggling budget airline had been negotiating with the Trump administration for a $500 million rescue package that would have provided cash in exchange for equity-like warrants, giving the government up to a 90 percent stake. However, the effort has stalled because Spirit has been unable to secure the necessary backing from bondholders and government stakeholders, people familiar with the matter told the Wall Street Journal Friday.

There were reportedly disagreements within the Trump administration over whether and how to fund the bailout, while not all Spirit bondholders were on board with the deal, either, the sources claimed.

Without agreement from both groups, the airline could not secure the funding it needed to continue operations, according to the sources. As a result, people familiar with the situation say the airline is now preparing for the possibility of running out of cash and shutting down entirely, including plans to liquidate its fleet, though the exact timeline remains unclear.