Thread: Eagle Life
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Old 11-15-2011 | 05:27 PM
  #4449  
stbloc
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Originally Posted by Wingtips
its highly unlikely they will go ch11 for at least 6 months, they got a bunch of cash on hand, they lose that if they go ch 11 towards debts, they do not want that.
Why? So they can continue to loose money quarter after quarter until its all gone? Or because they want to give union workers bigger contracts just so they end up screwing creditor and employees when they file? That cash on hands gives them more leverage to emerge from bankruptcy then if they entered with nothing. If they go into BK with nothing they run the risk of full liquidation. You got to have assets and cash or they will not be able to restructure and attract exit financing. No cash or assets, no airline, plain and simple. Plus they can screw the employee’s into lower wages, terminate the pensions, and force all creditors to take a haircut on their notes. BK is a win win for AMR. In 2004 they hired Goldman to studying the airline and they suggested filing then. They said no way the airline will survive under its current model. They were right, we are weeks or months away from AMR walking into a federal court near you.
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