Spirit Airlines revealed Monday that it has filed for Chapter 11 bankruptcy protection in an effort to reduce its debt and restructure the company.

In a Monday press releaseSpirit Airlines announced that it has “entered into a Restructuring Support Agreement (the “RSA”) supported by a large majority of Spirit’s convertible and fidelity bond holders, under the terms of a complete balance sheet restructuring.

Spirit Airlines explained that the restructuring process should help the company reduce debt, provide greater financial flexibility and “position Spirit for long-term success and accelerate investments providing customers with enhanced travel experiences and greater value.” »

Fox Business reported that the airline’s bankruptcy filing comes after two failed mergers with JetBlue and Frontier in the past two years, leaving the low-cost airline with repeated quarterly losses. The outlet noted that Spirit revealed plans in October to make layoffs and sell planes to raise the funds it needed to support its operations.

According to a court filing obtained by Fox Business, Spirit Airlines listed its assets and liabilities at between $1 billion and $10 billion each.

In Monday’s press release, Spirit Airlines CEO Ted Christie explained that the airline had reached an agreement with a large majority of the company’s bondholders on a “global recapitalization.”

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“This set of transactions will significantly strengthen our balance sheet and position Spirit for the future as we continue to execute on our strategic initiatives to transform the customer experience, delivering new and improved travel options, greater value and increased flexibility,” Christie said. “I am extremely proud of the hard work and dedication of the Spirit team, which is key to our continued progress in advancing our business and satisfying our customers. »

Monday’s press release states that existing bondholders have committed to providing a $350 million equity investment as part of the Chapter 11 bankruptcy protection agreement. Existing bondholders are also expected to provide Spirit Airlines with $300 million in debtor-in-possession financing.

Spirit Airlines said it is confident that the additional financing combined with its current cash reserves and liquidity provided by the airline’s continued operations will be sufficient to help the company through the Chapter 11 bankruptcy process.

“Spirit expects to continue to conduct business in the ordinary course throughout this pre-arranged and streamlined Chapter 11 process,” Spirit Airlines said. “Customers can continue to book and fly without interruption and can use all tickets, credits and loyalty points as usual.”