South Florida-based Spirit Airlines indicated it is still focusing on recasting the terms of its debt with bondholders, but did not address a national report that it has discussed a Chapter 11

Spirit shares took a nosedive on news of a possible bankruptcy filing. The budget carrier and its bondholders have discussed a potential Chapter 11 filing after its failed merger with JetBlue Airways,

By Pratyush Thakur and Rajesh Kumar Singh (Reuters) -Shares of Spirit Airlines plunged 37% to a record low on Friday after a report that the ultra low-cost carrier was discussing a potential bankruptcy filing.

The budget carrier has lost more than 85 percent of its value since it failed to merge with JetBlue Airways earlier this year.

Company is reportedly considering a bankruptcy filing.

The bargain carrier, which has faced financial difficulty for years, has not seen an annual profit since before the pandemic. Shares of Spirit Airlines (NYSE: SAVE) are crashing in premarket trading as of the time of this writing.

Spirit Airlines’ efforts to restructure its debt and avoid filing for bankruptcy have hit a snag after months of talks with bondholders failed to result in a deal, according to people with knowledge of the matter.