Spirit Air Pursues Bankruptcy as a Path to Tie-Up With Frontier

Spirit Airlines Inc. is in talks with Frontier Group Holdings Inc. about filing for bankruptcy to facilitate a takeover by the rival discount carrier, according to people with knowledge of the matter.

An attempt to sell Spirit via Chapter 11 would likely need the advanced approval of the airline’s creditors in order to fast-track the process so that it can emerge without pausing operations or burning through the rest of its dwindling cash. Early-stage discussions between the air carriers have involved working out terms that holders of Spirit’s roughly $2.5 billion of debt will agree to, said the people, who ...