Spirit Airlines, Inc., a prominent low-cost carrier with multiple weekly flights to the U.S. Virgin Islands, has officially filed for Chapter 11 bankruptcy in a New York court, listing assets and liabilities valued between $1 billion and $10 billion.

The move follows mounting financial challenges and escalating competition from rival carriers, compounded by the collapse of its proposed merger with JetBlue Airways Corp.

The bankruptcy filing comes as Spirit grapples with the aftermath of a federal judge’s decision to block the airline’s $3.8 billion acquisition by JetBlue.

The court ruled that the merger would likely harm budget-conscious travelers by inflating ticket prices across the airline industry. The federal government had opposed the merger on antitrust grounds, and the judge’s ruling effectively terminated the deal, leaving Spirit to navigate its financial woes alone.

In addition to the failed merger, Spirit has faced increasing pressure from larger airlines offering affordable ticket options. This competition has undercut Spirit’s market position and impacted its profitability. Amid these challenges, Spirit reached an agreement with a majority of its loyalty and convertible bondholders to implement a broad debt restructuring plan as part of its bankruptcy proceedings.