A U.S. bankruptcy judge on Thursday approved Spirit Airlines’ SAVEQ.PK debt restructuring, clearing the budget airline to convert $795 million in debt to equity and emerge from bankruptcy as a private company.

Spirit’s approval comes after the third merger attempt by Denver-based ULCC Frontier Airlines, part of a back-and-forth process between the two budget carriers that dates back to 2022 when Frontier made a run for Spirit but was usurped by JetBlue.

Financially troubled Spirit Airlines says its reorganization plan has been approved by a federal bankruptcy court in New York, opening the way for its exit from Chapter 11 “in the coming

While the strong brand and loyal customer base make a full closure unlikely, the pool of investors who will be able to pull the struggling airline back on track is limited — and, now that Spirit has rejected a merger offer from Frontier ( FRON) for a second time, got even smaller.

Spirit Airlines (SAVEQ) garnered retail attention on Thursday after a court approved its plan to exit bankruptcy by converting $795 million in debt to equity and emerge as a privately owned company. The company said it expects to emerge from restructuring in the coming weeks following the approval of the United States Bankruptcy Court for the Southern District of New York to hand over the airline to creditors.