Budget carrier Spirit is preparing to cease operations, The Wall Street Journal reported Friday morning.
Negotiations for a potential $500 million rescue package from the U.S. government have stalled, the newspaper said, largely due to objections raised by some of Spirit’s creditors. A group of investors reportedly made a counterproposal that would have better protected the value of their claims in the low-cost airline, but the White House rejected it.
Other outlets reported earlier this week that Spirit was running out of cash and could likely sustain its operations for only a few more days without federal intervention.
Spirit has not commented publicly on the Journal‘s report.
This is a developing story and will be updated as more information becomes available.
