Originally Posted by
Lincoln Osiris
So you are just going to blow past all the other you said that were wrong? Three strikes and you are out my friend.
• In a §363 sale, liens don’t have to be paid at par at closing—they attach to the cash, and secureds can credit-bid to prevent a low price. [11 U.S.C. §363(f), §363(k)]. [url alt="https://www.law.cornell.edu/uscode/text/11/363?utm_source=chatgpt.com"=https://www.law.cornell.edu/uscode/text/11/363?utm_source=chatgpt.com]Legal Information Institute[/url][url alt="https://www.crowell.com/en/insights/client-alerts/credit-bidding-a-sword-and-a-shield?utm_source=chatgpt.com"=https://www.crowell.com/en/insights/client-alerts/credit-bidding-a-sword-and-a-shield?utm_source=chatgpt.com]Crowell & Moring - Home[/url]
• You don’t transfer leased assets; you assume/assign the lease under §365 (cure + adequate assurance), notwithstanding anti-assignment clauses. Aircraft add §1110 timing/rights. [url alt="https://www.law.cornell.edu/uscode/text/11/365?utm_source=chatgpt.com"=https://www.law.cornell.edu/uscode/text/11/365?utm_source=chatgpt.com]Legal Information Institute+1[/url]
• “Free-and-clear assets” isn’t the standard—§363(f) lets you sell encumbered assets free and clear if a statutory condition is met; liens ride to proceeds (see TWA).
The lease holder, Aercap, is taking the planes back. They are not going to let them transfer at current lease rates. They will lease them out at higher rates to other airlines, mostly in Asia. The BK was to stop the immediate return of the planes. They will go back October 27th because they will just refuse to agree to any other terms and Spirit is in default of the lease agreement.
Somehow I believe you have this fantasy that some other airline ends up with some planes that use to be at Spirit and all of a sudden that airline is forced to take all the Spirit pilots. Unless the entire operation is purchased, which it won't be, there aren't going to be any pilots going except for maybe getting preferential interviews. Frontier is adding flights in direct competition with Spirit. They would not be doing this if they were interested in acquiring the entity as a whole.