Spirit’s shares sank as much as 42% in premarket trading Friday and its so-called “loyalty bonds,” about $1 billion of 8% notes due 2025, declined as much as 6 cents on the dollar to 45 cents, according to pricing source Trace.

Shares in Spirit Airlines (SAVE) sank, after the Wall Street Journal reported that the budget carrier has been discussing a poss

Spirit Airlines shares slumped 40% before the bell on Friday after the Wall Street Journal reported that the ultra-low-cost carrier was in talks with its bondholders about a potential bankruptcy filing.