Originally Posted by
C5Drvr
What were UALs debt numbers back then? Anyone can shrink as long as debt obligations aren’t too high, but when you are owned by what you owe, you lack control.
FWIW, at the time of the merger both UAL and CAL had virtually no unencumbered assets. (i.e. lots of debt) We've seen, and survived, this show before.
But yes, the creditors call the shots. In fact, there was so much overlap of creditors and investors that it was one of many reasons for the UAL/CAL merger in the first place instead of a different combination.