Originally Posted by
Vernon Demerest
Does it really matter who goes into chapter 11 first? The next 2 (or more) will quickly follow. They will have no choice. Heck, it might be advantageous to work for the airline that emerges first (meaning files first and navigates the process first). Good luck to us all.
Chapter 11 in this environment is quite likely to lead to chapter 7. A reorganization under chapter 11 is only possible if a business has a viable revenue stream. Currently that is not the case. Keep in mind when you file chapter 11 you end up on a cash basis for day to day expenses and financial control is passed to the creditors committee. Delta airlines came within 1 vote of going away when the creditors voted on Parker’s offer. The first airline to file chapter 11 will have a strong possibility of liquidation. All the major airline management teams will fight tooth and nail to avoid filing.