Spirit Airlines’ accessible cash to keep operating won’t last long and a government rescue package is on the table, a lawyer for the struggling budget carrier said at a hearing Thursday.
The company needs access to existing cash or new funding in the next few days to continue operations, said Marshall Huebner of Davis Polk, the airline’s lawyer.
“The cash actually available to Spirit to fund ongoing operations is not going to last for very much longer,” he said. “So either new financing, either or both of new financing or access to almost $240 million of restricted cash, is absolutely essential. Round about, no later than the end of next week.”
Spirit has been in “advanced” talks with Trump administration for financing that would keep the carrier afloat, Huebner said at a U.S. bankruptcy court hearing in New York. The iconic Florida discounter has been at risk of shutting down.
Huebner did not outline the plan in court, but people familiar with the matter have told CNBC that on the table is a $500 million loan that would give the government a potential stake of 90% of the Florida-based airline.
