Icelandair has walked away from merger talks with WOW Air, leaving WOW at the mercy of its bond holders.

WOW turned to its rival Thursday after talks with ultra low-cost investor Indigo Partners fells apart.

Both sides were hoping to conclude an agreement over the weekend, but by Monday morning in Reykjavik, Icelandair announced in a terse statement that it was walking away. “Icelandair Group has decided that its possible involvement in WOW air’s operations, as announced on 20 March 2019, will not materialize. Therefore, all discussions between the parties have ended.”

WOW serves Montreal and Toronto from its Icelandic hub.

In a last-ditch bid to stay afloat, WOW announced it would turn to its bond holders.

“A majority of WOW air Bond Holders and other creditors of WOW air are in advance discussions with the aim of reaching an agreement on a voluntary restructuring including an agreement of converting current debt into equity and fund the company towards long term sustainability,” the company said in a statement.

The company said it would release more information in the next 24 hours.