USA320Pilot
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Acaa To Give Us Airways $1.35 Million Credit
- Thread starter USA320Pilot
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...Oooh, I'm sure someone will have a great time spending this credit at the Air Mall! I'm sure that someone there can sell our company some magical beans?...I wonder if the ACAA sent Bruce the credit in the form of a gift card? 🙄 😀
BoeingBoy
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Actually, the article is a little misleading. The credit will be applied against amounts owed ACAA for last year:
$1.13 million will be applied against $2.56 million due ACAA in pre-petition bills.
$253 thousand will be applied against $5.34 million due ACAA in post-petition bills.
The BK court filing is here.
Jim
$1.13 million will be applied against $2.56 million due ACAA in pre-petition bills.
$253 thousand will be applied against $5.34 million due ACAA in post-petition bills.
The BK court filing is here.
Jim
ClueByFour
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This is slighly misleading. Per the article:
Now, if you read the actual filing, $1.1 million of that will offset pre-petition debts and claims to the ACAA. In essence, they can write off half of what US stiffed them with in the second bankruptcy filing without actually paying US a thing. US will get about $240k off the postpetition debt.
I'm curious as to why CLT's filing to do the same months ago did not warrant a post here, but I think we all know the real reason.
Now, if you read the actual filing, $1.1 million of that will offset pre-petition debts and claims to the ACAA. In essence, they can write off half of what US stiffed them with in the second bankruptcy filing without actually paying US a thing. US will get about $240k off the postpetition debt.
I'm curious as to why CLT's filing to do the same months ago did not warrant a post here, but I think we all know the real reason.
BoeingBoy
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Great minds think alike, Clue.....
The article makes it sound like a great deal for US - getting handed $1 million plus or at least getting a credit toward future bills.
In reality, this is a good deal for ACAA, which should be no big surprise since they filed the motion. They take a big chunk out of the pre-petition unsecured debt they hold, for which they stand to get pennies on the dollar in the form of "new" stock. Instead, they get dollar for dollar on nearly half of that debt.
They also take a small nibble out of the post-petition debt they're left holding for now.
Jim
The article makes it sound like a great deal for US - getting handed $1 million plus or at least getting a credit toward future bills.
In reality, this is a good deal for ACAA, which should be no big surprise since they filed the motion. They take a big chunk out of the pre-petition unsecured debt they hold, for which they stand to get pennies on the dollar in the form of "new" stock. Instead, they get dollar for dollar on nearly half of that debt.
They also take a small nibble out of the post-petition debt they're left holding for now.
Jim
