Financial Statement 9/12 - 10/31

[BoeingBoy]

The company has filed their 1st monthly operating report with the BK court. It covers the period beginning Sept 12 thru Oct 31:

Financial Statement

Condensed version:

Operating Loss $144 million
Net Loss $189 million
Cash & Cash Equivalents at 10/31/04 $791 million
Cash & Cash Equivalents per ATSB agreement (10/29/04) $763 million
Professional fees paid during period $3.3 million

Jim

 

[UseYourHead]

Thanks for the report Jim,

I do not have the numbers on hand; however, I was wondering if we have managed to keep our cash level above the required levels set forth at the beginning of this BK.

Do you know the minimum number that goes along with this reporting period?

The company has filed their 1st monthly operating report with the BK court. It covers the period beginning Sept 12 thru Oct 31:

Financial Statement

Condensed version:

Operating Loss $144 million
Net Loss $189 million
Cash & Cash Equivalents at 10/31/04 $791 million
Cash & Cash Equivalents per ATSB agreement (10/29/04) $763 million
Professional fees paid during period $3.3 million

Jim

[post="205136"][/post]​

 

[AtlanticBeach]

Policy limits on D & O insurance are much lower than a decade ago. But, that is a whole mess of policies. Obviously, someone wants, or feels the need to spread the risk over a lot of different vendors.

 

[BoeingBoy]

UYH,

Since there's no way to tell from the filing what the cash balance was on any day except the end of the period (Oct 31), there's no way to tell if we met all the weekly requirements.

The closest I can come is the Oct 29 requirement vs the Oct 31 cash balance - we were above the requirement by $28 million.

Going forward (from Oct 31) here are the next requirements:

11/05/04 $776,756,000
11/12/04 $684,852,000
11/19/04 $713,839,000
11/26/04 $723,214,000
12/03/04 $656,025,000

Jim

 

[jimntx]

The closest I can come is the Oct 29 requirement vs the Oct 31 cash balance - we were above the requirement by $28 million.

Jim

[post="205149"][/post]​

Jim, that's seems scary to me. If the cash burn rate is still $2mil/day, that gives you 14 days of cash to stay above the minimum. That's skating pretty close to the edge of the ice, isn't it?

 

[BoeingBoy]

jimntx,

Actually, the loss was $3.8 million per day for the period - 49 days and $189 million net loss. But "cash burn" was negative, IIRC. Without looking it up, didn't U have $750-some million cash on hand when we filed for BK2, vs $791 million on Oct 31?

On the positive side, the interim pay cuts (and ALPA/TWU agreements) didn't really start saving money till the end of Oct pay day.

On the negative side, there's a lot of bills that haven't been paid yet. I'm guessing that the biggest is airplane cure payments on the planes that U decides to keep. The GE deal is the first agreement reached and those cure payments aren't due until Dec 20, IIRC. The rest are still up in the air.

Jim

 

[sfb]

I'm guessing that the biggest is airplane cure payments on the planes that U decides to keep.

Well, many of the cure payments were probably made on or around 11/11, since that would have been right at 60 days after the company's bankruptcy filing. Actually, someone with more knowledge of the matter than I have might be able to say if the clock started with the filing or from when lease payments may have been due. But I think the week-ending cash target for 11/12 shows the anticipated impact of having to make a bunch of cure payments, since it is roughly $92 million below the previous week's, and it's unlikely that the company would be burning through $13 million/day otherwise.

From reading through the monthly operating report and comparing it to the company's 10-Q, it appears that the company liquidated substantially all of its short-term investments that had been on the books as of 9/30 -- this improved the unrestricted cash position by $80 million. Depreciation as reported wouldn't decrease the company's cash position. Most importantly, however, the company probably wasn't paying rents or pensions (accounted for as "personnel expense") which likely allowed them to accumulate a good bit of cash.

I don't know what would have been coming due this week (aside from concluding lease negotiations) that would account for the substantial decrease in targets between 11/26 and 12/03.

 

[BoeingBoy]

jimntx,

There is one thing going on over at UAL that could affect US. A motion has been filed in their BK to force UAL to bring pension payments up to date before exiting BK. If that's successful, it could be precedent for the same thing here, and that's something over $100 million.

USA Today article

Jim

 

[FWAAA]

Professional fees paid during period $3.3 million

[post="205136"][/post]​

Thanks for posting this.

On the professional fees, a footnote discloses that the $3.3 million is for 9/12 thru 9/30, so they are probably running about $6 million/mo.

 

[BoeingBoy]

Thanks, FWAAA, I missed the footnote.

Jim

 

[JayBrian]

If I recall correctly US also closed their fuel hedge position and raised about $50 million.


Jay

 

[BoeingBoy]

Well, many of the cure payments were probably made on or around 11/11, since that would have been right at 60 days after the company's bankruptcy filing.

[post="205160"][/post]​

Actually, agreements were reached with about all the lessors/EETC trustees to extend the 60 day limit. The GE deal is the first concluded 1110 agreement, I believe. The extensions last to various dates, the latest being Jan 14.

Somewhere around here is a thread where I posted tail numbers and extension end dates, though it is somewhat out of date now - several new extensions were filed recently.

Sorta on the topic, the judge has approved the rejection of 1 737 and is scheduled to approve (unless there are objections necessitating a hearing) the rejection of at least 10 more 737's in about a week.

Jim

 

[BoeingBoy]

Actually, agreements were reached with about all the lessors/EETC trustees to extend the 60 day limit. The GE deal is the first concluded 1110 agreement, I believe. The extensions last to various dates, the latest being Jan 14.

[post="205316"][/post]​

Well, I stand corrected. :blush: I just checked the website with the BK filings and several 1110 agreements were posted late this afternoon (darn, what I missed by going to the dentist!!!).

I haven't counted the number of planes, but there's the GE deal, and 2 or 3 others. I'll take the time to count them later and post the results.

Jim

ps - there were also several filings to extend the 1110 limit once again on a handful of planes. Most notably the 7 Emb-170 financed by Embraer.

 

[Walmartgreeter]

UYH,


The closest I can come is the Oct 29 requirement vs the Oct 31 cash balance - we were above the requirement by $28 million.

Jim

[post="205149"][/post]​

Youch! Thanks Jim for your detective work. We are about one snowstorm from liquidation. Best. Greeter.

 

[BoeingBoy]

Greeter,

The concluded 1110 agreements (mentioned in the post above yours) require something over $30 million in cure payments. That'll take a bite out of the cash collateral.

Jim