WorldTraveler
Corn Field
- Joined
- Dec 5, 2003
- Messages
- 21,709
- Reaction score
- 10,662
you have proven no one wrong.
You HAVE proven that you don't understand one basic airline business concept after another.
But you did it .all.by.your.self.
feel free to find the word "dump" in a financial primer on the BK process.
DL no more "dumped" debt in BK than AA did.
Both exchanged debt for equity. that is what the BK process does.
The only difference is that AMR allowed 100% of their monetary claims to be converted to equity.
To be clear, no other airline BK and few other corporate BKs have involved a 100% conversion of debt to equity.
But is also highlights that AA was not near as bad off as other carriers which means their primary motivation for entering BK was to finally cut employee costs.
AA employees received equity in exchange for what the company "dumped" - but the process was used the same by US.
Would you like to tell us what percentage of US' claims were paid?
and don't forget to note that the equity that US gave out after their first BK got wiped out in their second - so creditors from the first lost their recovery.
If you can't grasp those concepts, then you have no business participating in half of the discussions you participate in on this board.
You HAVE proven that you don't understand one basic airline business concept after another.
But you did it .all.by.your.self.
feel free to find the word "dump" in a financial primer on the BK process.
DL no more "dumped" debt in BK than AA did.
Both exchanged debt for equity. that is what the BK process does.
The only difference is that AMR allowed 100% of their monetary claims to be converted to equity.
To be clear, no other airline BK and few other corporate BKs have involved a 100% conversion of debt to equity.
But is also highlights that AA was not near as bad off as other carriers which means their primary motivation for entering BK was to finally cut employee costs.
AA employees received equity in exchange for what the company "dumped" - but the process was used the same by US.
Would you like to tell us what percentage of US' claims were paid?
and don't forget to note that the equity that US gave out after their first BK got wiped out in their second - so creditors from the first lost their recovery.
If you can't grasp those concepts, then you have no business participating in half of the discussions you participate in on this board.