Analysts: Us Airways Still In Uphill Climb

[BoeingBoy]

Analysts: US Airways still in uphill climb

By Thomas Olson
TRIBUNE-REVIEW
Tuesday, February 22, 2005

US Airways faces a very steep climb to obtain another $125 million in bankruptcy financing and probably needs much more, industry analysts said Monday.

Analysts: US Airways still in uphill clim

Jim

 

[usfliboi]

rofl they just cant see it happening.... time will tell

 

[Rico]

Gee, are those the same 'experts' who said we would be long since dead by now...?

Seems dumb that we could get, and then use 75 Mill of AWACs funds right now if other investors were not also lined up already. no...?

But hey, these guys say otherwise 🙄

 

[BoeingBoy]

Seems dumb that we could get, and then use 75 Mill of AWACs funds right now if other investors were not also lined up already. no...?

[post="249743"][/post]​

Not once you look past the headlines that say we got $125 million ($75 million as soon as the judge OK's the deal) and read the details.....

What did Air Wis get? 2nd dibs on all the ATSB collateral, which is everything that wasn't already hocked to the limit. That means between $1.4 and $1.7 billion in collateral (distressed appraisal or full appraisal) for the $670-some million ATSB guaranteed loan plus now the $175 million Air Wis DIP financing.

So to recap, the ATSB backed the $900 million loan for 1st dibs.

Air Wis gives $175 million for 2nd dibs.

What will 3rd dibs get .....

Jim

 

[justaumechanic]

Lets not confuse this money with Exit Financing.. That is not what this is.. They bought a chunk of assets for 125million.. You can bet thats all they are interested in.

The company still needs the 250mil and this article says that is not enough.

 

[usairways_vote_NO]

Analysts: US Airways still in uphill climb

By Thomas Olson
TRIBUNE-REVIEW
Tuesday, February 22, 2005

US Airways faces a very steep climb to obtain another $125 million in bankruptcy financing and probably needs much more, industry analysts said Monday.

Analysts: US Airways still in uphill clim

Jim

[post="249731"][/post]​

If he isn't on 320 list should you post this?

This plus oil over 50.00... hmmm...the time is ripe for round 4

 

[Winglet]

I think I'd bet $250 million on KENO before I'd bet it on Bruce Lakefield and US Airways. Does Bruce have anything left to hock?

And they're STILL losing money. Don't forget that point.

 

[RowUnderDCA]

All in all, It would be better for U if this $125 mil deal secured U's final needs to exit bankruptcy and complete its transformation, instead of it being just the beginning. Seems like if they have to be THIS creative and give this much up this early, that doesn't sound good.

However, in regard to exit financing... couldn't you interpret U as ahead of the game there. Since U self-financed with the generous help of the ATSB relaxing collateral rules, wouldn't traditional exit financing be equivalent to paying off the ATSB backed loans? Is anyone expecting U to do that? I'd have said that U's second bankruptcy was about labor costs and a bad business plan, not too much debt. But I don't know if U is expecting to pay off, partially pay off or cancel existing loans to emerge from bankruptcy, or if it is just looking for equity investors for more transformation capital.

I always get confused about this part... emergence.