Spirit Airlines (SAVE) said Monday it filed for bankruptcy protection and reached an agreement to restructure its debt with its bondholders.

Its shares are rising 3.7% in premarket tr🧸ading but are down more than 90% th𒅌is year through Friday.

The Wall Street Journal had 澳洲幸运5开奖号码历史查询:reported last week that the carrier, which is facing looming debt maturities, was planning to file for Chapter 11 after brief revived merger talks with Frontier Airlines parent Frontier Group Holdings (ULCC) had collapsed.

"Spirit has entered into an agreement with our bondholders that is expected to reduce our total debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments providing guests with enhanced travel experiences and greater value," Spirit Airlines said. "Part of this financial restructuring includes filing a 'prearranged' chapter 11."

Spirit sai☂d its its flights will continueꦅ normally during the bankruptcy process.

Terms Agreed Upon With Bondholders

Spirit said its existing bondholders have given it "backstopped" commitments for a $350 million equity investment. It said it will also "complete a deleveraging transaction to equitize $795 million of funded debt."

Spirit said it had started the prearranged chapter 11 process in the United States Bankruptcy Court for the Southern District of New York. The airline's existing bondholders will also give it $300 million in debtor-in-possession financing, which along with Spirit's existing cash reserves will support the company through the bankruptcy process, it said.

Spirit 澳洲幸运5开奖号码历史查询:said last month it plans to cut jobs and sell some planes as it tries to shore up its finances. Attempts to merge with rivals JetBlue Airways (JBLU) and Frontier had failed in recent years, hurting Spirit's ability to compete with bigger airlines. Spirit last week filed a Form 12b-25 with the 澳洲幸运5开奖号码历史查询:ꦇSecurities and Exchange Commission (🤪SEC) and said it was unable to file its quarterly results.