Originally Posted by
Saabs
Shyte Guy where did u go?
The name calling is completely unnecessary.
I posted based on the information I had, and I will say that the annoucement was surprising in that what came out was not for bankruptcy, but rather, a restructure announcement that serves as a precursor to bankruptcy. The information I had pointed otherwise, but it seems now that the restructure announcement is out, a bankruptcy announcement will follow. It's a fluid situation, but 2012 (as Menke himself put it), won't be a good year. They've virtually declared bankruptcy. Fortunately, with this annoucement we won't see a bankruptcy as expected, but the only thing it has done is merely push it back to buy time. Bankruptcy is still inevitable.
Instead of name calling and insults, why don't you analyze the facts?
Planned initiatives include seeking modifications to the company's agreements with its mainline airline partners, equipment lessors, debt holders, real property lessors and vendors. The company will also seek to work with its pilots and other employees (both union and non-union) to reduce labor costs. As part of its efforts, the company will examine and further rationalize its business lines, organizational structure and executive and director level functions.
Equipment lessors, debt holders, real property lessors, and vendors are all people who lose out in bankruptcy. It's all a telling sign. The real wake up call is "work with its pilots and other employees (both union and non-union) to reduce labor costs" or aka, concessions. They didn't say reduce operating costs, as in be smart about APU usage. They have already stated they want to reduce labor costs. The mechanics and FA labor agreements already suck, but the pilot JCBA is what they are going to go after. What you have to ask yourself is, what will your union give up to the company? What is TW record for giving up contractual things to the company? 150% for pickup? Goodbye. Or, will this group take a hard stand on NO conessions from its JCBA.
Dec. 8 (Bloomberg) -- Pinnacle Airlines Corp., an operator of regional flights for larger carriers, said it will seek to renegotiate debt agreements, flying contracts and union accords to help reduce costs.
The “comprehensive program” to boost liquidity also calls for reworking terms with lessors and vendors and shuffling management, Pinnacle said today in a statement. The airline said it hired Seabury Group LLC’s consulting division, Barclays Capital and Davis Polk & Wardwell LLP as advisers.
“Pinnacle Airlines Corp. is facing a convergence of events that, if left unaddressed, will make 2012 an extremely challenging year,” Chief Executive Officer Sean Menke said in the statement.
Delta Air Lines Inc. was Memphis, Tennessee-based Pinnacle’s biggest airline partners in 2010, followed by United Continental Holdings Inc. predecessor United Airlines, the company said in its annual report.
Pinnacle has reported losses in each of the past four quarters, and analysts surveyed by Bloomberg project that losses will continue for two more quarters.
They want:
* renegotiate debt agreements
* renegotiate flying contracts
* renegotiate union accords to help reduce costs.
These three things are basically everything an airline does in bankruptcy. It's like they declared a bankruptcy without physically declaring a bankruptcy. They have basically announced a restructuring plan without a bankruptcy, which is a precursor to an actual bankruptcy filing. The stock has tanked, so my initial post post was at least 75% accurate. Had you taken advantage of the stock going down, you could have profitted from it. If you can't short sell, you could have at least had a put option. With this virtual bankruptcy announcement, the Pinnacle stock tanked 24%. I had put option, and I made a little coin on Pinnacle's stock falling.
