Originally Posted by Finessed

So I’m wrong because only 5% of chapter 11 bankruptcies are converted to chapter 7. Yeah listen that’s most likely so low because nobody bothers with chapter 11 when it’s inevitable chapter 7 is the best result for the parties. But that doesn’t make it “wrong”, it makes it “highly unlikely”.

So let’s take a look at the balance sheet of American Airlines Group. They $64.54 billion in total assets, which is losing value daily. Total debt last quarter was $41.2 Billion. In December they were burning a reported 25-30 million a day.

It would be interesting to find out how exactly the debtors would be restructuring. Also I question if American really owns 65 Billion in assets, I bet the debtors during the chapter 11 process would have it valued substantially less.