Spirit Airlines disclosed it is in talks with its creditors for a restructuring deal, hours after it was reported that the company’s merger talks with rival low-cost carrier Frontier had fallen through.

Spirit Airlines' stock plunged 59% on Wednesday as the budget airline worked with creditors to restructure debt amid reports the company could file for bankruptcy protection within the next few weeks.

Spirit Airlines Inc.’s stock cratered 55% Wednesday, on track for its biggest-ever one-day decline, after the company warned that its equity would be wiped out as part of a restructuring deal that it’s currently negotiating with its creditors.