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 of Spirit Airlines plunged 37% to a record low on Friday after a report that the ultra low-cost carrier was discussing a potential bankruptcy filing.