Frontier Group (ULCC.US) has decided to abandon the acquisition of Spirit Airlines (SAVE.US) or face bankruptcy "in a matter of weeks."

According to reports, Frontier Group (ULCC.US) has abandoned its acquisition of its low-cost competitor, Spirit Airlines (SAVE.US), which is close to bankruptcy. Foreign media cited sources as saying that Spirit Airlines is about to file for bankruptcy, and the company is currently in "deep" negotiations with bondholders to develop a plan that will garner support from creditors. The bankruptcy is expected to occur within "a few weeks." The struggling airline recently received an extension from its credit card processor, extending the deadline for debt refinancing to December 23. Despite market expectations that the airline may avoid bankruptcy, its stock price has risen, but continues to hover near historic lows. After the news broke, Spirit Airlines' stock price plummeted 62% in after-hours trading.