UA to take charge against HKG protests


Jul 23, 2003
UAL posts earnings on 21-Jan-2020... From a 8-K filed 07-Jan-2020:
Notable Special Charges
For fourth quarter 2019, the company expects to record a special non-cash impairment charge of $90 million associated with its Hong Kong routes. The company conducted its annual impairment review of intangible assets in the fourth quarter of 2019, which consisted of a comparison of the book value of specific assets to the fair value of those assets calculated using the discounted cash flow method. Due to a decrease in demand for the Hong Kong market and the resulting decrease in unit revenue, the company determined that the value of its Hong Kong routes had been fully impaired. Notwithstanding such impairments, the collateral pledged under the company's term loan continues to be sufficient to satisfy the loan covenants.
More or less. They had a tangible value to borrow money against, but that was before tanks and tear gas started rolling thru Kowloon...

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