Media Reports For 3/31/05
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BoeingBoy
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- Nov 9, 2003
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I'm sorry, 700UW, let me correct that.....
Back when the ATSB-backed loan was finalized, there were no 170's or PSA CRJ's. As I recall, the loan agreement lists aircraft that are collateral - not by tail number but by type - and the later acquired aircraft are not listed.
So in theory, the planes bought (and mortgaged, as opposed to leased) since the loan agreement was initially finalized would not be part of the collateral and could be sold with the proceeds remaining with US. I'd have to go back to see if anything was added that would modify the list of collateral, but I don't remember anything off the top of my head.
On the other hand, however, the loan agreement (from memory) says something about asset sales in general - not just the non-cash collateral - and that the proceeds have to go toward paying down the loan (except for the few months in 2004 when we could keep 25%).
So the short version is that I'm not sure if we can keep any of the money or not. And as I said, nothing prevents the ATSB from allowing us to keep some of the money anyway - except maybe their good judgement.
Jim
Back when the ATSB-backed loan was finalized, there were no 170's or PSA CRJ's. As I recall, the loan agreement lists aircraft that are collateral - not by tail number but by type - and the later acquired aircraft are not listed.
So in theory, the planes bought (and mortgaged, as opposed to leased) since the loan agreement was initially finalized would not be part of the collateral and could be sold with the proceeds remaining with US. I'd have to go back to see if anything was added that would modify the list of collateral, but I don't remember anything off the top of my head.
On the other hand, however, the loan agreement (from memory) says something about asset sales in general - not just the non-cash collateral - and that the proceeds have to go toward paying down the loan (except for the few months in 2004 when we could keep 25%).
So the short version is that I'm not sure if we can keep any of the money or not. And as I said, nothing prevents the ATSB from allowing us to keep some of the money anyway - except maybe their good judgement.
Jim
