Shares of Spirit Airlines (SAVE) plunged after the Wall Street Journal’s Alison Sider and Alexander Gladstone reported that the budget carrier is planning to file for bankruptcy protection after merger talks with Frontier Airlines (ULCC) broke down. Spirit is in advanced talks with bondholders to flesh out a bankruptcy plan that would have support from a majority of creditors, and a bankruptcy filing could occur within weeks, according to people familiar with the matter. Spirit shares are down about 60% to $1.31 in early trading.
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