Originally Posted by
SnowmanKiller
Currently at trending a -$400 million or so loss at the low end per year. This operating loss will grow substantially as planes are parked. With liquidity of around $1 Billion and a bond that has to be rolled over by September 2025 there is a good chance we will be entering bankruptcy to liquiditate to our creditors.
When this happens, how are our non-vested 401k contributions, sick time, and vacation time handled? I assume we lose all these?
Would it be worthwhile to bid vacations to be earlier in the year to get that money before the company dies?
If we lose our 401k contributions, is it worthwhile to withdraw our 401ks, even with the penalty fees, to keep at least some portion of our 401k balances from being clawed back by creditors or an insolvent company? I saw this happen at PSA - guys got furloughed and their 401ks were seized by the company. Can that happen here?
Do sick time get paid out when the company shuts down?
Is there a risk of not being paid at the end? I understand if I ride this thing all the way to liquidation I may end up stranded somewhere and have to pay my way home - do we immediately lose CASS access?
This is not a discussion about stay/go. I am simply trying to understand how I can extract as much value out of this enterprise if it becomes a necessary course of action for me/waiting for response from applications. Thank you.
I think your way too early on this. Appeal process needs to play out and I have to believe other suitors are out there. but as someone who went through an airline bankruptcy I can answer a few of those questions and guess on a few others.
Any Of your own $ and all of your vested company contributions cannot be touched by creditors. I verified this with I believe it was fidelity at the time. As far as unvested company contributions I’ll guess those can’t be touched either. I don’t believe you can withdrawal those anyhow so it doesn’t really matter. Bottom line your 401k is safe. I wouldn’t touch that. You could call your provider to verify no weird law went into effect over the last several years I don’t know about.
This is a guess, Your sick goes away and you become a creditor for unused and acrued vac. This is in a liquidation scenario and again you’re pretty far away from that imo.