• Citadel and Ares Management rejected a $500 million federal rescue package for Spirit Airlines.
• The plan would have given the US government a 90% equity stake in the airline.
• Creditors preferred liquidating Spirit's assets to recover more value.
• 17,000 workers lost their jobs due to the airline's collapse.

This decision may indicate that private creditors will prioritize asset recovery over federal rescue packages, which could set a precedent for future airline bailouts. The outcome suggests that industrial policy bailouts may face significant opposition, potentially limiting the government's ability to intervene in distressed industries.