I do manage to do that sometimes. Maybe I'm the one getting confused. As stated everything is just rumor but the talk around the watercooler is that the money was moved back to Wexford which has obvious ties to us. We didn't sell the 91mil for $40mil we spent around $40mil buying our stock back then sent $40mil of dept to someone else. It was almost an even trade.

To the above statement then lets clarify a few things. I use RAH probably when I shouldn't. I'll use Wexford more to be accurate. No they do not have a literal 91mil claim in Comair, you are correct in saying it's part of Delta Holdings. Comair and Delta are two separate companies though. They can be sold separatly. It's rumored that the additional debt was picked up by Wexford. When Delta comes out of bankruptcy it's liable for the 91mil stake that Wexford has in it. With steady talk of Delta looking to sell off Comair AND looking for something with good performance/business practices to take over the flying it would seem that the $91mil plus our companies current relationship with Delta could be maneuvered to secure Comair. RAH bought the stock back from Wexford then in turn sold the debt to an "undisclosed" entity. The money swapped was almost equal. I believe it was a maneuver to position them better for a purchase.

As far as why I feel it would benefit the company. Well as I stated once iI don't think it's about the planes. Someone else put it best when someone mentioned the planes. His words: It's not about 50 seat RJs. It's about Fees for Departure and another 15 year marketing agreement. It's about increasing revenue streams, thus more profits. For the Mainline, it's about a stable, seamless, quality, partner in the outsourcing process to increase feed. There appears to be no other buyer with the resources to make the acquisition that makes sense. A sales contract can be written that will protect both party's interest.

Obviously I'm not management here and could be wrong as all hell but this was started as a discussion on RAH picking up Compass. My views or opinions are my own and I don't expect everyone to agree. If I fuge up a little here or there by not being as technically accurate as the next then sorry on that part. I wasn't setting out to write a thesis on it. Like it or don't like it that's up to you but don't make attacks over it. It's an opinion and it's mine.


On another note. I was under the belief that you can't own stock in a bankrupt company. Basically through RAH and Wexford 91mil of money was sent to Delta to help them reorganize etc. There isn't actual stock. The company can't turn it into anything more than it already is can they? Isn't it money Delta owes Wexford?