Bankrupt discount carrier Spirit Airlines is preparing to cease operations, after failing to align certain bondholders and the U.S. government on a bailout plan, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Spirit Airlines and the White House did not immediately respond to Reuters requests for comment.

A rescue hearing scheduled for Thursday, April 30, did not take place after talks over the terms of a potential $500 million U.S. government bailout reached an impasse.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Tasim Zahid and Anil D’Silva)