Originally Posted by
Clear Right
Let's assume you are correct and B6 is in on the edge of CH11 or CH7, then those facts substantiate the argument to rule in B6's favor by the Judge (Pro-Business). If B6's future truly is on the brink of failure, then how does that help competition for the consumer (DOJ position). The government in it's DOJ case would in effect be eliminating a DOJ proven disrupter, the "JetBlue and Spirit effect" would be eliminated by attrition. Therefore, helping support the case for a favorable ruling, the Stock Price will probably double. Will you still be concerned if the DOJ case is approved for B6/NK and the Stock price doubles?
I agree that both of our company's terrible financial results help our case. You assume, however, that a merger is a good thing. I'm not sure that taking on a $3.5b debt in rising interest rates is gonna be the wisest move. This management team couldn't grow when rates were 2% and we were making money. You also assume that our stock doubles with a merger. That is a big assumption. If that happened (and that's a big if), that would only make me feel better in the short term as B6 could dilute some stock to keep afloat, and if we did go Ch7 we may get bailed out due to our combined size, but the fundamentals of us losing money and digging ourselves into debt need to change before I am happy.