We know that President Trump is working on a plan for the government to bail out Spirit Airlines. The airline hasn’t turned a profit in seven years, and is continuing to hemorrhage money. The idea is to give the airline a $500 million loan, and for that to eventually give the government a 90% stake in the airline.
But what’s actually the legal mechanism by which Trump wants this deal to happen? We’re now learning more details about what this will look like…
The idea is that the government would lend Spirit $500 million at a reasonable interest rate, and the government would then become the top debtor in the bankruptcy pecking order. The loan would be protected by Spirit assets, which would reportedly exceed the government’s costs, and would provide taxpayers with a warrant, with the right to own 90% of the company after it emerges from bankruptcty.
A great solo travel tip spotted this week on One Mile at a Time.
