Originally Posted by
SnowmanKiller
I seem to recall the current owners, the previous bondholders, were against an acquisition by Frontier. I wonder where the leaseholders and creditors stand this time around.
My default assumption is the super majority of leaseholders and creditors want a liquidation. As Scott Kirby says, he can do math, so I imagine they can too. Just a question of what the timeline is before Spirit loses control of the bankruptcy and the creditors/leaseholders force it into chapter 7 liquidation.
Sorry guys, rooting for you all to land on your feet somewhere.
What do the creditors get in a liquidation? Leaseholders get all their jets which presumably they will have to find homes for. Some but not all will probably find homes quickly but then they hold the bag on the rest.
The CEO jets we have mortgages on go back to the banks which they now have to find homes for. No one wants them otherwise we would have sold them for cash. So bank is holding the bag.
Now, our current masters of PE we owe $2B+ to get what? They have a an HQ that’s worth $400m? What else?
Doesn’t seem like there is much value in a liquidation. Now if I was a debt holder and I could somehow convert my debt into equity of a viable company that would have some value. Frontier? Maybe not viable for short or long term equity growth to make their money back. JetBlue? Short run struggles but long run quality product that could have value with added synergies and increased scale. Southwest or Alaska obviously good choice’s depending on their horizon for selling their shares.
I have clue what Im talking about but it sure seems to me that there isn’t much value to many stakeholders in forcing a liquidation bc there just aren’t parts to sell off. The only value is in the operation itself but the debt would have to be converted to equity to make it viable for a suitor