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There are a lot of things that can be done in Chapter 11 reorganization to defer bond payments, convert bonds to preferred stock, restructure or cut wages for employees (it has happened before). I predict Chapter 11, which is not even a certainty, a much more likely scenario that Chapter 7 liquidation.
They have to much debt along with cash burn to convince any judge into chapter 11. A full recovery by June-July would save them initially, and if needed they could file chapter 11. Originally Posted by TransWorld
So you are predicting AA will declare Chapter 7 bankruptcy, which means liquidation and going out of business?There are a lot of things that can be done in Chapter 11 reorganization to defer bond payments, convert bonds to preferred stock, restructure or cut wages for employees (it has happened before). I predict Chapter 11, which is not even a certainty, a much more likely scenario that Chapter 7 liquidation.
Tbh, I’d wager we don’t have “normal” passenger loads until 2022. American will not survive that long if that’s the case. Inevitably they’ll be forced into chapter 7, game over.