Some Spirit Lenders Balk as US Rescue Talks Hit Impasse

Talks over a potential $500 million US government rescue financing deal for Spirit Aviation Holdings Inc. have hit an impasse, with a lender group that includes Citadel, resisting terms that would likely severely impair their claims and recoveries, according to people familiar with the matter.

The group made a counterproposal in recent days that has gone unanswered, one of the people said. The people asked not to be identified discussing confidential talks.