Originally Posted by
SmitteyB
With all due respect, our bankruptcy at 9E was much different. We were on the brink of Chapter 7 liquidation, not 11. We had less than $40 in cash and cash equivalents when we filed. We needed the DIP financing just to keep making payroll.
$75 million is too little for RAH, even in Bankruptcy. I have a feeling Embraer, Brazilian Export Bank, or even Citigroup would have put up more than that if it were going to take a controlling interest in the entity.
I understand the similarities that your are correlating, but they are apples to oranges.
I am simply going to agree to disagree that it is an apples to oranges comparison since I don't believe I could convince you otherwise. However, by all intense and purposes delta actually overpaid by 15.9 million since RJET's current market cap is only 59.1 millon.
Now I understand dip financing isn't actually a purchase of the company but of delta wanted to buy it at its current price it would have been cheaper than what delta just did.