SPIRIT Airlines Prepares to File for Bankruptcy After Merger Negotiations With Frontier Group Holdings, Tthe Wall Street Journal reported.

The budget airline is in advanced discussions with bondholders to develop a bankruptcy plan that would have the support of a majority of creditors, as it grapples with mounting losses and looming debt maturities . The Wall Street Journal » said Tuesday, November 12, citing sources with knowledge of the matter.

A bankruptcy filing could occur within a few weeks, he adds. Shares of Spirit fell as much as 47 percent in extended trading.

A spokesperson for Spirit did not immediately comment on the report to Bloomberg, while a representative for Frontier declined to comment.

Spirit had held talks with Frontier about filing for bankruptcy to facilitate a buyout by the rival discount carrier, Bloomberg reported last month.

An attempt to sell Spirit through Chapter 11 would likely require pre-approval from the airline’s creditors to expedite the process so it can emerge without interrupting operations or spending the remainder of its dwindling cash flow. Early discussions among the airlines involved working out terms that holders of Spirit’s roughly $2.5 billion in debt would accept. BLOOMBERG