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 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.

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.