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

It received a proposal from Frontier earlier this month, where in its shareholders would $400 million in debt and a 19% share in Frontier, the corporate said in a regulatory filing.

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

The Florida-based airline declared bankruptcy in November after grappling with prolonged periods of monetary losses, unsuccessful merger efforts and a considerable levels of debt.

The airline said it expects to finish its restructuring process in the primary quarter.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Arun Koyyur)