whatkindoffreshhell
Veteran
Today's WSJ Page 2 Article (highlights):
--BK judge rules UA doesn't need to make $248mil payments for so-called special facilities revenue bonds related to projects at LAX, SFO, JFK
--these bondholders' debt will be classified as unsecured claims
--David Plavin, Airports Council Prez stated "this makes it almost impossible now for an airport to be supportive of an airline that wants a particular facility for its own operation"
--other analyst quoted "this structure will never work again....since people wouldn't be willing to put their money in these kinds of bonds" in a ruling that was closely anticipated in municipal bond circles.
--BK judge determined that these UA payment obligations were financing agreements and not leases
--BK judge rules UA doesn't need to make $248mil payments for so-called special facilities revenue bonds related to projects at LAX, SFO, JFK
--these bondholders' debt will be classified as unsecured claims
--David Plavin, Airports Council Prez stated "this makes it almost impossible now for an airport to be supportive of an airline that wants a particular facility for its own operation"
--other analyst quoted "this structure will never work again....since people wouldn't be willing to put their money in these kinds of bonds" in a ruling that was closely anticipated in municipal bond circles.
--BK judge determined that these UA payment obligations were financing agreements and not leases