Originally Posted by
MainlineFlyer
I mean buying a fully functioning airline with trained and proficient staff, gates, etcetera holds some value above its liquidation value. I'm not arguing that it will happen, only that it could. Most companies purchased in BK have had an upside down balance sheet so anything could happen.
Also I'd argue that when many of the debt holders won't see a dime in Ch7 perhaps they would accept a lesser amount to forgive the debt. Half of something is better than nothing at all.
It really doesn’t. If an airline buys NK, they have to continue to fund the massive losses while trying to integrate the NK product to the new product. That “trained and proficient staff” would all need to be retrained before flying on the new certificate; all costing money and time. Every plane would need to have over a million spent on each plane and time to retrofit it while making lease payments on it. Oh…and the Pratt issue is still there. The only gate/airport is real value are LGA slots. It’s not like you buy NK and that purchase starts to make money anytime soon.
It’s millions and millions of dollars plus literal billions of debt.