Promising to shield domestic corporate restructuring from geopolitical shocks, the California congressman assured investors that a Middle Eastern nuclear exchange would not interrupt the airline's bankruptcy proceedings.
NEW YORK — Promising to shield domestic corporate restructuring from geopolitical shocks, Rep. Kevin Kiley assured Bloomberg viewers Saturday that the United States would not allow an Iranian nuclear weapon to disrupt the orderly liquidation of Spirit Airlines.
During a wide-ranging interview with hosts David Gura and Christina Ruffini, the congressman stressed that a thermonuclear exchange in the Middle East would introduce unacceptable volatility to the budget carrier's Chapter 11 proceedings. Kiley warned that a sudden spike in global instability could spook the private-equity firms currently maneuvering to purchase Spirit's remaining Airbus A320s, derailing what has otherwise been a highly efficient transfer of corporate assets.
The congressman noted that while a broader regional conflict presents certain humanitarian challenges, his immediate legislative priority is ensuring that Spirit's unsecured bondholders are not forced to take a loss due to sudden macroeconomic headwinds. Kiley added that Washington is closely monitoring Tehran's subterranean enrichment facilities for any activity that might depress the secondary market for used commercial jet engines.
Investors require certainty, and nothing introduces friction to an asset fire sale quite like the vaporization of a major global shipping corridor. We are prepared to back whatever military action is necessary to ensure these terminal leases at Fort Lauderdale clear at fair market value.
Kiley further noted that the Supreme Court's recent decision in Louisiana v. Callais had finally established a favorable regulatory framework for dismantling the airline, making it vital to preempt any foreign nuclear ambitions that might distract the capital markets. The congressman ended the segment by confirming that U.S. defense contractors are fully prepared to secure the region, provided the Pentagon signs off on a new round of cost-plus procurement contracts before the end of the fiscal year.