Originally Posted by
Airsupport
Remember its nearly 200 planes that would be parked. Ch 11 has the option of an orderly wind down. In ch7 there is no orderly wind down. Creditors get in line and stuff gets sold.
Sort of, but not exactly.
If your management, or Delta, have been smart, they "cross collateralize" assets. What this means is that the lease for ship #001 is secured by the hull of ship #003. The engines for ship #004 are on #002 and the cowlings are on #005. A lot of this happens just as spares get swapped around during line operations.
The ACA Dornier fleet was a disaster. Someone would buy an airplane, only to receive a call three months later demanding that the right engine be returned to XXX Capital Management, meanwhile a lien was being filed against the hull and a lawsuit to recover the FMC, etc... .
The last Eastern Airlines lawsuit was resolved in the last couple of years, if that gives you any frame of reference. CH7 and an airline is guaranteed employment for hundreds of attorneys.