Here's the info "..two of the three Spirit creditor groups are on board with the government's offer of up to a $500M lifeline. The unsecured creditors and the revolving creditors are in. The bondholders have not yet committed."

The bondholders are currently in first position in a liquidation. If they agree to the term sheet they'd get crammed down and the Government would get their $500M back before bondholders get a penny. Its pretty obvious that unsecured and revolving creditors are ok with it because they would be totally wiped out anyway. At least this gives them a shot if this ends up surviving. I wonder what would cause the bondholders to get nothing and just give up the chance to recoup their losses?

Especially if the Government is taking a 90% ownership stake.

OK I think I get it now. The bondholders will get their $450M DIP money back, but likely no chance to recoup any of their $2B in debt since the Government would own the airline. The only issue is that with the money going out the door this only gives them a few weeks to a few months of cash. So it kicks the can down the road.