(Bloomberg) -- Spirit Airlines Inc. said its deal with JetBlue Airways Corp. “remains in full force and effect” as the carrier explores ways to shore up its liquidity, offering investors a measure of relief after a federal judge blocked the multibillion-dollar buyout.

The company also detailed efforts to refinance debt in a wide-ranging update Friday aimed at easing anxieties over how Spirit will navigate the fallout of its troubled merger. The airline lost almost two-thirds of its market value in the days after the Jan. 16 court decision.

Spirit “continues to believe that a combination with JetBlue is the best opportunity to increase much needed competition and choice,” the company said in a regulatory filing. It didn’t specify whether it would appeal the ruling.

Read More: JetBlue’s $3.8 Billion Spirit Deal Turns Into a Nightmare

The company’s shares surged 28% after the markets opened in New York, the biggest intraday gain since November 2020, recovering a portion of the week’s losses. Spirit’s junk bonds also rallied in secondary trading: Its 8% notes due in 2025 jumped 9.25 cents on the dollar to trade at 60.75 cents as of 8:10 a.m., according to Trace bond trading data.

Spirit is seeking to regain support after the deal collapse led multiple Wall Street analysts to predict a bankruptcy filing or even liquidation. Cash has been dwindling at the budget carrier in an environment of high operating costs and flagging demand for low-cost domestic travel.

“There is a real bankruptcy risk at Spirit without a swift change in fundamentals,” Conor Cunningham, a Melius Research analyst, said in a note. “But that doesn’t mean management won’t fight to right the ship. Bankruptcies don’t just happen, they take time.” 

Spirit likely is working on a revised standalone plane, he said. 

The airline said in Friday’s filing that it’s assessing options to refinance 2025 debt maturities.

Liquidity Source

As of Dec. 31, the company had $1.3 billion of liquidity, including unrestricted cash and equivalents, short-term investment securities and $300 million of liquidity under a revolving credit facility. It’s in negotiations with aircraft parts-maker Pratt & Whitney over compensation for issues with the geared turbofan engine, which Spirit said represents a “significant source of liquidity over the next couple of years.”

The carrier also said fourth-quarter revenue would reach the high end of its forecast after strong bookings around the Christmas and New Years holidays. Spirit raised it operating margin guidance for the period.

The update comes a day after Spirit pushed back against bankruptcy speculation, saying it was “not pursuing nor involved in a statutory restructuring.”

Read More: Spirit Air Says No Bankruptcy Planning After JetBlue Setback

“We don’t think a bankruptcy filing is a foregone conclusion,” said Savanthi Syth, an analyst with Raymond James. Engine-related compensation, cost-reduction efforts and domestic travel demand “are all important variables.”

(Updates with share trading, analyst comment beginning in fourth paragraph)

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