Bankruptcy

[CaptBud330]

They just said at 7:55pm that "Useless" Air as they called it, was well on it's way to 3rd bankruptcy. Unbelievable. Midwest furloughing 125, United 950, US Airways 3rd bankruptcy or liquidation.

 

[PhxMama]

Who is 'They"? Mama

 

[YVINTERN]

Who is 'They"? Mama

The Oil Speculators...We gotta arrest these rotten b*****ds.

 

[oldiebutgoody]

Some guy named Dennis Gartman, publisher of "The Gartman Letter" said it on Larry Kudlow's show.

He was talking about how LCC's stockprice was in the $2.50 range.

 

[luvthe9]

That's a no brainer

 

[Career Reserve]

They just said at 7:55pm that "Useless" Air as they called it, was well on it's way to 3rd bankruptcy. Unbelievable. Midwest furloughing 125, United 950, US Airways 3rd bankruptcy or liquidation.

Since the money we received is from the 9/11 fund and we are required to pay that back, how can we go into bankruptcy again? Or has the airline paid it back already? If they haven't paid it back, does
the airline get to pick and choose what debts they won't honor?
Or will this be liquidation?
Am I making sense? :blink:

 

[oldiebutgoody]

Since the money we received is from the 9/11 fund and we are required to pay that back, how can we go into bankruptcy again? Or has the airline paid it back already? If they haven't paid it back, does
the airline get to pick and choose what debts they won't honor?
Or will this be liquidation?
Am I making sense? :blink:

That has long been repaid. It was "financed" by the exit funds from the last chapter 11. The Government made a pretty penny on it, too.

 

[PhxMama]

I was under the impression because the interest rate was so low it was not paid back. Anyone have more than just impressions? mama

 

[whlinder]

Every airline sans Southwest is well on their way to bankruptcy unless they figure out how to increase their revenues very quickly or oil prices retreat rapidly.

 

[US1YFARE]

Every airline sans Southwest is well on their way to bankruptcy unless they figure out how to increase their revenues very quickly or oil prices retreat rapidly.

Maybe headed that way, but that does not mean Bankruptcy is their final destination. If US heads to BK, they are toast. The liquidation of US and possibly others will help those that are still standing. Also, I have to think that oil prices will drop, maybe not to $50, but they will drop.

 

[700UW]

Since the money we received is from the 9/11 fund and we are required to pay that back, how can we go into bankruptcy again? Or has the airline paid it back already? If they haven't paid it back, does
the airline get to pick and choose what debts they won't honor?
Or will this be liquidation?
Am I making sense? :blink:

There was not a 9/11 fund that airlines got money from, there were grants given and US utiliized the ATSB loan program, the loan was sold to private banks and then US refinanced it, there is nothing preventing them to go back into chapter 11.

The two loans were combined and US is still paying on it.

 

[PITbull]

Some guy named Dennis Gartman, publisher of "The Gartman Letter" said it on Larry Kudlow's show.

He was talking about how LCC's stockprice was in the $2.50 range.

I don't believe a company can use Bankruptcy chapter 11 three times. Their next trip is liquidation "7".

It's not anyones fault that the fuel prices are at historical levels. Most trucking, freight, rail, airlines are in jeopardy. Congress needs to mandate OIL DRILLING NOW. Give incentives to auto makers to build althernative energy vehicles, incentives to gas stations to add new alternative energy pumps to fuel tanks....incentives to consumers to purchase energy efficient vehicles.

My advice to folks at U, look for alternative jobs. The industry is really in trouble and there will be massive reductions in flights and jobs to stay afloat. Get your own house in order!!!

Hoping for the best to the employees who have sacrificed so much to keep the job they love. It's just time to move on for those who can.

 

[700UW]

There is nothing preventing a company to file bankruptcy for a third time.

 

[Rico]

there is nothing preventing them to go back into chapter 11.

Other than the lack of available financing...

If US Airways goes into bankruptcy, it will most likely be Chapter 7 liquidation this time. There is little chance that anyone is going to sink in capital to keep any airline afloat (in Bankruptcy, or enough to exit it)...

IMO the big reason most airlines passed on the chance to merge, is that they expect to be able to pick up what is left (ala Eastern) rather than deal with any merger issues.

And don't think think for a moment that CAL wasn't brought on board (into the Star Alliance) to fill the void that a US Airways closure would leave.

I hate to say it, but if Chapter 11 were a viable option this time, they'd already be filing for it to protect the cash they have left. You cannot restructure unless you have the capital to do so. Chances are, anyone that is going to invest the $$$, is going to put money towards buying up what's left rather than propping up what was...

 

[700UW]

When US filed chapter 11 for the second time they did not have DIP Financing until almost time to emerge from chapter 11 and survived.

And Frontier doesnt yet either and they are in chapter 11 and still flying.

US still has the 190s and the LGA and DCA slots as collateral.