Spirit Airlines is preparing to cease operations after the beleaguered company ran out of cash and a rescue attempt by the Trump administration appeared to stall.
The company struggled to make a deal with its creditors and secure funding to maintain operations, according to a Wall Street Journal report citing people familiar with the matter.
After earlier reports that Spirit was close to liquidation, the Trump administration said it was working out a deal to keep the carrier afloat, including a potential $500m loan from the federal government.
Donald Trump said last week he was aware the company had been struggling and even suggested the federal government could buy out the carrier.
On Friday, he told reporters an announcement could come later Friday or Saturday. “We gave them a final proposal,” he said. “We’re looking at it, but if we can’t make a good deal – no institutions…
