Originally Posted by
6ix9ineYearFlow
More leveraged than their last bankruptcy.
More debt than United & Delta combined.
AA bonds approaching distressed levels at 12%.
AAG is in trouble.
The silver lining is that oil is cheap and AAG has $7.3 billion in liquidity....
I think they can just default on the loans for the airplanes without filing BK.
Before it was to reorganize the pensions.
In this case, they just don't need the capacity, and can allow the planes to be repossessed.
When the debt doesn't have collateral you have to use BK. When it does you surrender the collateral.