Originally Posted by
EWR73FO
Neidl said AMR does not face imminent bankruptcy because it has $4.9 billion in cash -- although that's down by $900 million in just three months.
I've taken the liberty to nudge your highlight to the second half of that sentence.
At that cash burn rate there 16 months left.
Since you need cash to enter CH11, maybe half that.
Unless AMR shows at least 2 consecutive profitable quarters, CH11 is unavoidable.
I'd imagine a deal will be struck (merger etc.) just prior to reaching the Edge of Ch11. That gives the head-honchos the most leverage in gaining concessions. The fact that the CH11 scenario is being floated is part of a concerted effort to set up the narrative over the next 6-9-months.
AMR is a great company, too bad the other players changed the rules mid-game.
Cheers
George