New Financing Options?

dfw79

Senior
Aug 20, 2002
308
0
I''m definitely not an expert in this whole bankruptcy scheme, but hopefully someone can shed some light on this. Should RSA pull out on Friday can another group, say TPG, be able to be brought in to replace the funding and keep the planes in the air? The airline is very close to meeting its financial goals, only $100 million to go, that it would seem another company could come in an provide the DIP financing and replace Bronner and boys.
I would appreciate any insightful feedback on this...minus any negative posts from bitter employees who can''t answer the question directly.
 

N305AS

Advanced
Aug 20, 2002
133
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www.usaviation.com
[blockquote]
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On 12/18/2002 1:33:15 PM dfw79 wrote:

I'm definitely not an expert in this whole bankruptcy scheme, but hopefully someone can shed some light on this. Should RSA pull out on Friday can another group, say TPG, be able to be brought in to replace the funding and keep the planes in the air? The airline is very close to meeting its financial goals, only $100 million to go, that it would seem another company could come in an provide the DIP financing and replace Bronner and boys.

I would appreciate any insightful feedback on this...minus any negative posts from bitter employees who can't answer the question directly.
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[/blockquote]

Unless I'm mistaken, should RSA pull their DIP financing, there is no provision for a separate entity to come forward and be named as DIP.

I'm sure such an arrangement could be done somehow, but it's highly unlikely since they would need to have the advance work done to present a new reorganization plan to the court by the December 20th deadline, with themselves and their financial information outlined instead of RSA as the DIP provider.

In other words, check...and mate.
 

atlmd80

Member
Nov 30, 2002
34
0
I think if RSA was to walk away from the table Bronner would take assets equal to the amount he has already lent in DIP financing. A new DIP provider could give money, but the airline would be light the RSA assets.