Negotiations for a potential half-billion-dollar federal bailout of Spirit Airlines have reached a deadlock, according to a Tuesday report from Bloomberg News citing industry sources.
The breakdown centers on disagreements with a consortium of lenders, spearheaded by hedge fund Citadel, who are resisting proposed conditions they believe would substantially diminish the worth of their investments and restrict potential returns.
Bloomberg News reports that the lending group submitted an alternative proposal in recent days, but has not received a response from negotiators.
Reuters was unable to independently confirm these developments. Both Spirit Airlines and Citadel declined to provide immediate comment when contacted by Reuters.
