Originally Posted by
Excargodog
I believe their highest ever profit was in 2019, which was right around $3billion. So how long is it going to take them to pay off $40 billion in debt? At this level of interest?
Trust me, I bear no ill will whatsoever toward AA or any of it’s people, but I simply don’t see how they get out of a hole that deep.
Debt matters not; so long as revenue exceeds the servicing of the debt..... Still, even then, creditors will often revise and restructure the debt rather than face getting pennies on the dollar in bankruptcy. I'd expect them to use the COVID crisis as cover to renegotiate first; then a bankruptcy if that fails. Their BOD will be satisfied that it wasn't their fault, it was COVID's, and they made every reasonable effort to save the company prior to Ch.11
In the end however, all debts must be paid.