Years of losses and two failed mergers have caused the ultra-low-cost carrier’s stock price to tumble 92% in the past year. But Spirit says it will bounce back.

While the word "bankruptcy" brings to mind images of shuttered gates and liquidation (and that is indeed what happened to a number of low-cost airlines this year), filing for Chapter 11 protection is actually a way to keep the company going and reorganize finances amid rising debt.

Spirit Airlines files for bankruptcy after years of losses and a blocked JetBlue merger. The carrier secures $300M in financing, aiming to exit bankruptcy by next year.