Originally Posted by
FlyingKat
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.
I was trying to avoid mentioning politics, but, yes, Obama's administration did stick it to the bond holders. Having said that, the federal judges who reviewed the agreements accepted what had been done.
I just don't see Chapter 7 as a possibility. There would be a long reduction in capacity because other airlines would take some time to take over the planes and staff them. It would be a disaster for Delta and I think Delta, if it fears a loss, will quickly move to renegotiate. In fact, that might be why today's hearing was delayed.