Gov’t Negotiated Merger?
$Spirit Airlines (SAVE.US)$ the Biden-Harris Administration may attempt to facilitate (and even subsidize) an acquisition of $Spirit Airlines (SAVE.US)$ by $Frontier Group (ULCC.US)$ $Allegiant Travel (ALGT.US)$ $Sun Country Airlines (SNCY.US)$ or INDIGO/Bill Franke to avoid further embarrassment regarding the aftermath of their decision to block the JetBlue-Spirit merger. The government frequently does this when banks are about ready to collapse. If Spirit can’t renegotiate with their bondholders by Oct. 20, then they will almost certainly declare bankruptcy. Those headlines so close to an election would hurt Harris. As Spirit continues cancelling flights and ending services at numerous airports—severely cutting upcoming lower cost holiday season travel and defeating the purpose of why the administration opposed the deal—I wouldn’t be surprised if the gov’t facilitates a lifeline.
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RoNo : Source?
Justin Brewer OP RoNo : My opinion as written.
RoNo : I see. Saw similar thoughts on Stocktwits earlier
QMengColdJoke : just let biden buying out bond then extend would be best bailout
Justin Brewer OP RoNo : I didn’t see Stockwits, but I’ll check it out.
Thanks!
Justin Brewer OP QMengColdJoke : Great idea
RoNo QMengColdJoke : It may be possible but certainly improbable.
RoNo : So are you both long save? I’ve been writing calls and selling puts since the courts decision have got my basis down to $4ish. It’s been a downhill ride for sure.
Justin Brewer OP RoNo : I’m long. Still down a lot, but I’ve sold covered calls for the past 6+ months.