Originally Posted by
Whacker77
I would find it very hard to believe a bankruptcy judge would dismiss Delta's DIP knowing it would likely mean Chapter 7 for Pinnacle. Like it or not, federal judges make political rulings all of the time. Just look at what happened to GM bond holders in late 2008 and 2009. Their rights were evicerated by federal judges. Chapter 7 would not only be a disaster for Pinnacle, but it would also hamper Delta's route structure greatly. I just can't see it happening even though I agree Delta has positioned itself ahead of other creditors. Who knows though. We live in unusual times.
Actually it was the Obama administration that derailed the bankruptcy process and shafted the investors. The judges never got the chance. A Federal bankruptcy judge is not going to subvert precedent and years of bankruptcy case law for a small operation like Pinnacle. I know Pinnacle is big in Memphis and would be a pain for Delta, but in the big picture it is peanuts. When I worked at Comair in customer service, I remember people saying the same thing about Bush forcing the pilots back to work during the strike because the CVG hub would shut down, Delta's network would be disrupted, and the transportation system would be severly disrupted. Never happened. Delta adjusted and the world droned on while Comair sat idle for months.