Spirit Airlines (SAVE) shares plunged as much as 40% in recent Friday premarket activity after the Wall Street Journal reported that the budget carrier is in talks with bondholders for the terms of a potential bankruptcy filing.
Spirit is also looking at restructuring its balance sheet through an out-of-court transaction, the report said, citing unnamed people familiar with the matter.
Recent talks have been focused on reaching an agreement with lenders to support a Chapter 11 filing, the Journal said, adding that a filing would not be imminent if it were to happen.
Spirit did not immediately respond to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Price: 1.3300, Change: -0.91, Percent Change: -40.62
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