Spirit Airlines is making plans to cease operations as soon as Saturday, barring last minute intervention, CBS News has learned.
Negotiations over a $500 million dollar government aid package remained stalled after bondholders balked at the terms.
U.S. officials tell CBS News they are tracking this closely.
The airline’s available cash on hand was expected to last only a matter of days, CBS News previously reported.
Spirit continues normal operations Friday, and sources emphasize the airline’s focus remains on safely completing those flights.
A spokesperson for the bankrupt airline declined to comment on the ongoing discussions, saying only that “Spirit is operating as usual.”
