The Miramar, Florida-based discount airline is expected to file for bankruptcy protection from its debts in as little as 10 days or within weeks, sources familiar with the matter confirmed to CBS News. The Wall Street Journal first reported the looming bankruptcy filing.

In the clearest sign yet that bankruptcy is on the itinerary, Spirit Airlines warned early Wednesday that it is preparing for a "statutory restructuring" if it successfully renegotiates terms with its bondholders.

Spirit Airlines is reportedly in discussions about a potential bankruptcy plan following recent challenges with merger and debt negotiations.

The Wall Street Journal, citing anonymous sources, reported late Tuesday that the airline was discussing terms of a possible bankruptcy filing.

Stockholders in financially troubled Spirit Airlines, the South Florida-based discount carrier, would see their shares cancelled under a potential debt restructuring agreement that has been under