Spirit Airlines is now reportedly in advanced talks over a possible bankruptcy filing following a failed merger and continued financial struggles, The Wall Street Journal reported Tuesday evening. The company had been exploring a merger with another low-cost airline,

The budget carrier is in advanced discussions with bondholders over a filing that could occur within weeks.

Spirit Airlines is preparing to file for bankruptcy protection after merger talks with Frontier Airlines broke down, the Wall Street Journal reported, citing people familiar with the matter. The ultra-low cost carrier is in advanced discussions with bondholders to hammer out a bankruptcy plan that would have support from a majority of creditors,

Spirit Airlines is on the brink of filing for Chapter 11 bankruptcy protection following the collapse of its merger talks with Frontier Airlines. With more than $3 billion in debt, Spirit is negotiating with bondholders for a restructuring plan that could allow it to continue operations under bankruptcy protection.

The ultra-low cost airline is gathering assets for a bankruptcy plan, which motions could be initiated in coming weeks.

Spirit Airlines is preparing to file for bankruptcy protection after merger talks with Frontier Airlines broke down, the Wall Street Journal reported, citing people familiar with the matter. Shares of the company were down 39% at $1.

The Journal reported that Spirit is looking to bankruptcy after talks with Frontier about reviving a merger broke down.