(Gray News) – Spirit Airlines is considering filing for bankruptcy after mounting financial losses, according to the Wall Street Journal.
The outlet reported that Spirit Airlines has been in discussions with bondholders over the terms of a potential bankruptcy following its failed $3.8 billion merger with JetBlue Airways.
Both companies mutually agreed that it would have been unlikely for them to meet the requirements of the contract, according to a press release.
JetBlue’s new CEO, Joanna Geraghty, called the merger “a bold and courageous plan intended to shake up the industry status quo” and speed JetBlue’s growth.
As of now, Spirit is seeking new financing from its creditors, as well as an exchange that would extend its current debt.
Despite the travel demand, the company is struggling to profit, and without a deal, the company would be forced into bankruptcy.
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