Originally Posted by
VegassBus
My management has nothing to do with what I think I should be paid. What they think and what I think is completely different.
I apologize. I spoke incorrectly. I said bailout, I don't know why I said that, I meant Bankrputcy.......
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This is a HUGELY capital intensive industry. There have been more LCC bankruptcies than legacy bankruptcies.
The difference is that LCCs usually file Chap 7 after initially filing Chap 11 because they can't find enough debtor in possession (DIP) financing to keep the doors open. Legacies, on the other hand, can usually find enough DIP financing to reorganize under Chap 11.
Let me rattle off a few names: Eos, Maxjet, Skybus, ATA, Independence, Midway. I'm sure I missed a few.
If you look at Virgin America's history, the investors had to do multiple restructurings in order to get the company profitable - equity injections, lease renegotiations, etc. If VX had been a public company, those restructurings would have had to take place in Chap 11.