Originally Posted by
MunkyButtr
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.
Basically it is all up to the judge. And if you look at case law for Sub Rosa bankruptcies, it doesn't look good for this plan to be approved. Without the DIP financing Pinnacle will run out of cash quick if DL doesn't pay what it owes Pinnacle for the Mesaba integration. At the beginning of April Menke said they had enough cash to keep the doors open for two weeks if DL hadn't intervened.
Doesn't matter who it affects or how bad it hurts the transportation system. If the Judge approves this motion (and there is a good chance he will) then the DIP financing goes away. If Menke was telling the truth about the company finances and the denials of DIP financing from normal lending institutions, you would be looking at a shutdown in a couple of weeks. No cash company can't operate period, no matter who it hurts.