Originally Posted by
Carl Spackler
It is THE issue that brings them to bankruptcy court. Period. Create all the tortured arguments you wish, but bankruptcy court's only purpose is to shield you from the CREDITORS to which you owe DEBT. Spin all you want, but those are the facts.
You have that right. I have the right to post actual data and analysis. Unfortunately, alfaromeo also has opportunity to spin and deflect arguments to shield the MEC from it's obvious incompetence. All while on full FPL.
Carl
I think you may be talking past each other.
What I hear you saying Carl is that CH11 is used to protect the company from creditors and restructure obligations/contracts (debt in one form or another).
What I hear Alfa saying is that even if they get relief from this "debt", it's insufficient to turn AMR around in a meaningful and sustainable way because they have a revenue problem that CH11 can not address.
IMO, these are not mutually exclusive statements. They could both be right.
Pure speculation warning, but what may be ominous for AMR, is that CH11(reducing debt) may not be enough, which might mean the "house of pain" for AA employees above and beyond wage a benefit cuts. Possible scenarios include significant restructuring of their network (capacity cuts/loss jobs etc.). Possible asset sales in less than profitable markets, or non-core markets, possibly NYC/LAX among others. Possible fragmentation or merger where the employees will be synergized.
If I remember correctly, what Parker wanted to do with DAL was keep us in BK longer, so that he could use the courts to strong arm the synergies out of the DAL end of the merger.