Originally Posted by
Gone Flying
isn't a condition of the CARES act that 1113(c) filings cannot happen for 10 years after a company takes the bailout, or did that not make the final cut?
not disagreeing with your logic, just curious how big a threat BK actually is at the moment to labor ( liquidation aside)
If the company files for bankruptcy it will more than likely be chapter 7 and a liquidation. You can’t file for a reorganization without a decent revenue stream and a substantial amount of cash on hand. With most of Delta being non union and our pilot contract being amendable the company does not have to file bankruptcy to achieve substantial costs savings from the employees. Even if they filed for reorganization that involves surrendering control of the airline. Delta came within 1 vote on the creditors committee of ceasing to exist in the last bankruptcy. Only Parker’s incredible arrogance got us that one saving vote.