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

The budget carrier has been discussing a possible restructuring agreement to be implemented in chapter 11.

The airline is grappling with over $1 billion in debt, and a looming October 21 deadline to renegotiate that debt has sparked concern. These challenges come after the collapse of Spirit’s planned acquisition by JetBlue, which was blocked by a federal judge earlier this year due to antitrust concerns.

Shares of discount airlines Frontier Group Holdings and JetBlue surged Friday on a report that rival Spirit Airlines is holding discussions about a possible bankruptcy.

Shares in Spirit Airlines (SAVE) sank, after the Wall Street Journal reported that the budget carrier has been discussing a poss

Spirit’s shares sank as much as 42% in premarket trading Friday and its so-called “loyalty bonds,” about $1 billion of 8% notes due 2025, declined as much as 6 cents on the dollar to 45 cents, according to pricing source Trace.

Spirit Airlines shares are tumbling 40% in premarket trading Friday as the carrier reportedly is exploring a bankruptcy filing in the wake of its failed $3.8 billion merger with rival JetBlue Airways.

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 airline has been losing money despite strong travel demand,