Interesting Bk Filings

[BoeingBoy]

There are a couple of interesting new BK filings.....

First, the minor - a motion was filed seeking permission to reject the contract for the luxury box at MCI Center. No value was given.

MCI Center Motion

Second, a motion was filed seeking permission to sale/lease back 4 B767's and a spare engine. The sale would be to Mountain Capital Partners, LLC for $40.75 million.

B767 Motion

Jim

 

[usair_begins_with_u]

No big loss... From what I hear, the MCI Sky Box post BK#1 sucked... I had the luxury of partying in it like a rock star a few times, the best of all was for the Kiss Reunion concert.. the food was free and booze was flowing.. of course, that was before the first bankruptcy Ahh the good old days..

 

[jimntx]

Second, a motion was filed seeking permission to sale/lease back 4 B767's and a spare engine.  The sale would be to Mountain Capital Partners, LLC for $40.75 million.
Jim

[post="286660"][/post]​

Well, I was an English major, but isn't this what one would call a major bargain for the buyer and a major giveaway for the seller? According to my Google results, a (one, uno, une) used 767 sells for 50- 88 million dollars.

Do the four have some door dings that are reducing the value?

 

[BoeingBoy]

Funny you should mention that, Bob......

Nothing specific, but a list of 24 officers who will receive "modified employment contracts".

List

And again no specifics, but these (among lots of other) plans:

US Airways, Inc. Management Employee Severance Benefit Policy
US Airways, Inc. Severance Benefit Policy for Managing Directors
US Airways, Inc. Transaction Retention Payment Plan
US Airways Group, Inc. 2003 Nonemployee Director Stock Incentive Plan
US Airways Group, Inc. 2003 Nonemployee Director Deferred Stock Unit Plan
US Airways Funded Executive Defined Contribution Plan
US Airways Unfunded Executive Defined Contribution Plan
USAir, Inc. Supplemental Executive Defined Contribution Plan
Allegheny Airlines, Inc. Executive Savings Plan
PSA Airlines, Inc. Executive Savings Plan

Complete list

Jim

 

[phillyguy]

Surprised Deborah Thompson - Consumer Affairs is not on the list. She (IMHO) was one of the good people at U. Always reasonable and willing to listen and help whenever possible.

Phillyguy

 

[USA320Pilot]

There is reason to believe the B767 aircraft sale/leaseback indicates the company is looking at other ways to raise cash and is another indication MDA may not be sold.

Regards,

USA320Pilot

 

[ClueByFour]

Surprised Deborah Thompson - Consumer Affairs is not on the list. She (IMHO) was one of the good people at U. Always reasonable and willing to listen and help whenever possible.

Phillyguy

[post="286701"][/post]​

Except for the "Your Fault" column each month in Attache.

 

[Phantom Fixer]

There is reason to believe the B767 aircraft sale/leaseback indicates the company is looking at other ways to raise cash

Imagine That?...My office chair was sold for pennies on the dollar while I was sitting in it last night..then we paid above market rates for the milk crate that replaced the chair. Sound familiar?


"and is another indication MDA may not be sold"

what possible indications would that be? Everything written says to the contrary on this...or are you hoping that mis-information will calm the storm brewing within the already angry MDA work groups?

[post="286702"][/post]​

 

[legacy-to-LCC]

There are a couple of interesting new BK filings.....

First, the minor - a motion was filed seeking permission to reject the contract for the luxury box at MCI Center. No value was given.

MCI Center Motion

Second, a motion was filed seeking permission to sale/lease back 4 B767's and a spare engine. The sale would be to Mountain Capital Partners, LLC for $40.75 million.

B767 Motion

Jim

[post="286660"][/post]​

i need some assistance unpacking this whole "sale/leaseback" concept. admittedly, i was initially excited by the proposed sale of four 76s--presumably the precurser to an accelerated airbus 330 delivery. at second glance, however, it appears it is just a short-term capital boost? this is my interpretation: we sell the 76s plus one engine and have immediate access to all but $10 million of the value of the transaction; we then lease back the planes on a monthly basis??? while i would work a 76 (or boeing product, for that matter) over a 330 any day of the week, month, or year, u's 76 fleet are woefully aged and aesthetically decrepid.

 

[realtime]

There is reason to believe the B767 aircraft sale/leaseback indicates the company is looking at other ways to raise cash and is another indication MDA may not be sold.

Regards,

USA320Pilot

[post="286702"][/post]​

Is that why Republic deal has not yet come to fruition? The deal is in jeopardy?

 

[a320av8r]

I don't think that the deal is in Jeopardy- it's more like Let's Make a Deal.

I don't think the pay per flight deal is working so well and I think that the MAA and mainline pilots may be able to come up with something better if we retain these aircraft.

Hopefully Doug is smarter than the past management (as is my dog) and can get something better all the way around. Lets see.

Hopeful 😉

 

[tadjr]

I think that the MAA and mainline pilots may be able to come up with something better if we retain these aircraft.

Hopefully Doug is smarter than the past management (as is my dog) and can get something better all the way around. Lets see.

Hopeful 😉

[post="286724"][/post]​

What is the difference between the old F28/F100/DC9 contract and the current MAA contract as far as $ per flying hour? Are they really far off or does anyone think that something along those lines might be in the works for ALL of the EMB170/190/195 family of planes? Would make sense if something could be worked out (especially for the pilots and fas at MAA) to get some type of inhouse agreement for these to stay at mainline and fly them AS MAINLINE. They are nice planes and would be a BIG boost to the new company as far as image and comfortable planes vs some of the competitions smaller RJS.

 

[usair_begins_with_u]

Legacy to LCC:

Sale-leaseback transactions are an alternative method for raising capital. A sale-leaseback transaction allows an asset to be sold and immediately leased back to the seller. After the transaction the seller is able to make use of the property in a more productive way. Tenants profit from the sale, while retaining full operating control of the property.

Its a form of off-balance-sheet financing, the major benefit of sale-leaseback financing is unlocking the capital bound by asset ownership. Off balance sheet financing is scrutinized now more than ever since the passage of the SOX Act, (it was a favorite gimick of the Enron crew). Its usually done by companies:

Looking to finance growth
Making an acquisition
Paying down a debt
Reallocating capital into more productive uses

My first guess is that Uair is doing it for liquidity purposes, and or possibly because the cost of its debt is so high.

No matter how you slice it, it's dangerous territory.. Imagine taking a second mortgage out on your house to pay your first mortgage when your not making any money. If you dont start making money soon, its going to catch up with you quick, then you lose your house. Sounds like fun eh? I'd prefer a game of minigolf.

 

[USA320Pilot]

The B767s could be replaced by A330s and the A350s used for growth. Moreover, there could be a lot of used B767-300s coming into the used aircraft market with favorable lease terms in the not-to-distant future.

Regards,

USA320Pilot

 

[WorldTraveler]

767s (esp. 300s) are in very strong demand worldwide. remember that UA just lost a few because they wouldn't pay market rates.
US' 762s are old and are not the current ERs CO flies; they are worth nowhere near $50 each.