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.

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.

After settling a $3 million lawsuit alleging deceptive trade practices in December and discontinuing e-commerce operations in January, Houston-based Vroom has filed for bankruptcy. The company announced Tuesday the voluntary reorganization will convert about $290 million in unsecured convertible senior notes due in 2026 into new shares of common stock.

Spirit Airlines has filed for Chapter 11 bankruptcy protection following significant financial struggles due to mounting losses and debt maturities, the airline announced Monday.