Originally Posted by
Avroman
Sounds like the shareholders sniffed out the shenanigans that Delta has been pulling. The only problem with stopping Delta's DIP is nobody else was willing to step up (so we have been told) If the objection is upheld, would we not likely have to move to Chaper 7 since there will be no financing to continue operations?
Chapter 7 has been thrown around a lot in these threads, but you need to remember the impact of pinnacle liquidating. We operate roughly 190(not sure) planes for one carrier. Forget the fact that its our DIP provider for a second. If we liquidate, now correct me if I'm wrong, those planes stop flying immediately right? That would have a huge impact on the transportation system and I doubt any federal judge would want a part in that. Second, how much does pinnacle have in liquid assets? I would venture to guess that it wouldn't come close to covering even a fraction of the debt. I don't think one creditor will be able to sway the dip loan. Now if all the creditors teamed up I think we would have something to worry about.
Now I'm starting to see why Menke is leaving. Maybe he didn't want to be any part of this sham tactic. They wanted him to do something he didn't agree with and stood up for himself while Spanjers was in the background cutting deals with Daddy D.