Spirit Confirms Talks for US Rescue as Creditors Fret Over Terms

Spirit Aviation Holdings Inc. is in “very advanced discussions” with the US government on terms of a material financing package, its lawyer Marshall Huebner said Thursday.

Huebner, speaking in New York bankruptcy court, declined to discuss financial terms. Details were shared with Spirit’s three primary creditor groups.

Bloomberg reported Wednesday that the Trump administration has proposed a deal, which isn’t yet finalized, for $500 million of financing in exchange for warrants that could give the US government the option to own as much as 90% of the budget carrier once it emerges from bankruptcy.

The talks with the government come ...