UAL Wants $300 Million Loan Terms Amended
- Thread starter BillLumbergh
- Start date
I find it interesting that one of the DIP creditors, J.P. Morgan, came out today with a note talking about how a UAL liquidation would be such a benefit for the rest of the industry. Perhaps they're getting ready to pull the plug?
http://www.marketwatch.com/news/yhoo/story...6A69BF9BA245%7D
http://www.marketwatch.com/news/yhoo/story...6A69BF9BA245%7D
This is exactly the problem with the investment/analyst industry. Conflicts of interest.
But, with such scrutiny of analyst behavior as it relates to companies that the sister investment divisions are in business with - I doubt this analyst was tipped off or vice versa.
Analysts can write all they want, but it will come down to the covenants. From what I've read, UA is working to draw contingency plans if a war with Iraq occurs and puts them in danger of violating the covenants.
I hope they all can come to a solution if it gets dire. If the war looks like a quick one, they'd be wise to bend a little in my mind. Again...who can afford major asset purchases?
But, with such scrutiny of analyst behavior as it relates to companies that the sister investment divisions are in business with - I doubt this analyst was tipped off or vice versa.
Analysts can write all they want, but it will come down to the covenants. From what I've read, UA is working to draw contingency plans if a war with Iraq occurs and puts them in danger of violating the covenants.
I hope they all can come to a solution if it gets dire. If the war looks like a quick one, they'd be wise to bend a little in my mind. Again...who can afford major asset purchases?
autofixer
Veteran
"Who can afford a major asset purchase?" ... RSA (Retirement System of Alabmama, with $24 billion in liquid assets.).
True...there are many non-airline entities that could afford it. Including RSA with interests in U. God forbid they have to face this - it would be nice to keep things "in the family".
