Originally Posted by TAFsMatter

The government stake is proposed as equity, not secured debt.

I imagine the creditors (like Citibank or aircraft lessors) who have 100% full value recovery specific secured debt would prefer liquidation.

But the bondholders who probably won't even get full recovery on the DIP, let alone the billions of previous debt secured under looser terms back in 2019? They may be done investing more of their money, not so sure they would turn down $500M of (free to them) government money for another chance at an actual sale or turnaround.