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Spirit Airlines has rejected a merger offer with Frontier as it prepares to exit bankruptcy.

Spirit rejected the proposal as it would not provide the anticipated shareholder value and raised concerns over the timing and successful completion of the deal.

Spirit Airlines said in regulatory filings Wednesday that it is rejecting the latest merger offer from Frontier Airlines, and will instead continue with its bankruptcy restructuring plan.

Frontier made its first offer to buy Spirit in 2022.

Frontier Group Holdings ULCC has proposed a merger with Spirit Airlines SAVEQ through newly issued debt and stock, offering higher recoveries for Spirit's stakeholders than its standalone restructuring plan.

After walking away from a deal twice last year, Frontier is now making an offer involving fresh debt and stock.

Spirit Airlines on Wednesday said it expects to exit bankruptcy in the first quarter and rejected a merger with rival Frontier Group , saying it was not favorable for the low-cost carrier.

Frontier Airlines said Wednesday it has again proposed combining with Spirit Airlines, which is in bankruptcy.

Spirit Airlines is laying off approximately 200 employees as part of an effort to reduce expenses as the company looks to emerge from bankruptcy, the company said. The airline's top executive, CEO Ted Christie, informed employees of the job cuts on Wednesday evening.

Spirit Airlines hasn't had a profitable year since 2019, and it's lost more than $2 billion since 2020. It filed for bankruptcy protection in November.