NEW YORK (CNNMoney.com) - Low-cost carrier Independence Air will shut down as of Jan. 5 due to bankruptcy, a company statement said Monday.

FLYi Inc., the airline's parent, said in the statement refunds should be available for all customers who have tickets for flights after the company shuts down, pending approval of the bankruptcy court.

The company's shares are expected to become worthless as an outcome of bankruptcy proceedings, the press release said.

"To date there has not been a firm offer put forward that meets the financial criteria necessary to continue operations as is," said Independence Air chief executive Kerry Skeen in the statement.

The last scheduled flight is flight 1777 from White Plains, N.Y., to Washington Dulles departing at 7:26 p.m. ET, the press release said.

The company said in the statement it will offer customers who have departures scheduled while the airline is still flying, but return dates for after Jan. 5, the opportunity to change their return times at no cost.

The company said it will not give refunds for free tickets or vouchers, according to the statement.

Independence Air began service on June 16, 2004 and has over 200 daily departures to 37 destinations, the press release said.

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