Spirit Airlines shares are rising in premarket trading after the budget carrier said Monday it filed for bankruptcy protection and reached an agreement to restructure its debt with its bondholders.

The low-fare carrier has struggled to find its footing after its planned merger with JetBlue was blocked by a federal judge.

The ultra-low cost airline is gathering assets for a bankruptcy plan, which motions could be initiated in coming weeks.

Spirit Airlines is reportedly preparing to file for bankruptcy protection within weeks after a merger with Frontier Airlines fell through.

A low cost carrier is preparing to file for bankruptcy protection - causing the share price to tank by 40 percent in seconds.