Citadel’s Yearslong Spirit Bet Faces New Risk on US Rescue Plan

Ken Griffin’s Citadel has been intertwined in Spirit Aviation Holdings Inc.’s bankruptcies over the past two years. It even parted ways earlier this year with a portfolio manager after a series of losses that included a soured bet on the distressed budget carrier.

Now with the Trump administration nearing a rescue package for Spirit that could give the US government the option to own as much as 90% of the carrier once it emerges from bankruptcy, the hedge fund has more at stake than just about any other creditor.