Originally Posted by
full of luv
That will be an understatement if you end up in BK court.
BK in itself is VERY EXPENSIVE, $100's of millions down the rathole of lawyers fees and other costs that do nothing to help the operation, or pay employees more. It lasts a long time and costs so much that the company has no choice but to go for the jugular so that they can get new financing to rebuild the airline at a new improved cost structure.
My opinion only: I see every single airline entering BK. And this time it's going to be restructuring simply to provide necessary commerce to prop up the rest of the economy. All the stock wiped clean, and not going to be a consideration to be re issued for a long time while the airlines simply take government aid money, create cash flow to operate, and pay employees and vendors. Move the rest of the world towards recovery simply as a utility. It's that dire. Nobody is going to view an airline as an investment for a period of at least five years. It's going to be simply prop them up, let them collect cash to operate, pay employees and vendors. That's it. The government will be first to siphon back any reserve cash later, not stockholders. Maybe yrs later stock comes back, with serious constraints.
Maybe ten years down, or five. Definitely no stock concerns for now.
I wouldn t look for a stock recovery any more. I did for a while, no more. Sold it all.