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Spirit Airlines prepares to declare insolvency, WSJ reports

Spirit Airlines is preparing to file for personal bankruptcy security after merger talks with Frontier Airlines broke down, the Wall Street Journal reported, pointing out people knowledgeable about the matter.

The ultra-low cost carrier remains in innovative conversations with shareholders to hammer out a bankruptcy plan that would have assistance from a majority of creditors, the report stated.

Spirit is preparing a bankruptcy filing within weeks, the report added.

The company did not right away respond to a Reuters ask for comment.

The provider has been losing money regardless of strong travel demand. It has actually stopped working to report a revenue in the last 5 out of six quarters, raising doubts about its capability to handle looming financial obligation maturities.

Last month, Spirit said it

would furlough about 330 pilots

on Jan. 31 as part of its efforts to cut expenses and support its financial resources.

(source: Reuters)