Spirit Airlines is reportedly working with creditors about possible bankruptcy terms after the carrier¡¯s continued financial struggles.

According to the Wall Street Journal, officials from Spirit were hoping the merger with Frontier Airlines would help restructure debt and other liabilities without a bankruptcy filing, but the deal fell through and the airline will be forced to take alternative measures.

The report suggests Spirit is now preparing to file for Chapter 11 bankruptcy protections within the next few weeks. The carrier was previously granted an extension to refinance its over $3.3 billion in debt.

To alleviate some of the debt, the airline plans to lay off employees and sell its aircraft, which should provide over $500 million. As a result of the bankruptcy news, Spirit shares dropped around 60 percent, with stock being down 80 percent over the last year.

Earlier this week, Spirit unveiled significant adjustments to its network, slashing dozens of domestic and international routes to focus its resources on the most popular destinations.

The low-cost carrier will trim 24 routes in cities across the U.S. and beyond, a move which will impact flights to and from major hubs over the coming months.

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