Originally Posted by
LongHornFlyer
I still haven’t seen a legitimate reply…if we are heading for liquidation, why are the bondholders continuing to burn $3M+ per day? Many of you seem to think they are just running a charity until they can no longer make payroll.
They're burning the "$3M a day furniture" because they are desperately looking for a financial suitor while the BK court stay is in effect. This is very typical in the initial stages of Airline Chapter 11s as they look for anyone willing to bail them out. The October 27th court date, when the current "stay" expires, will most likely be the definitive timeline for Spirit to find some miracle financing or face liquidation, as the court will, in all likelihood remove the stay for AerCap and others to take their assets and run.
Spirit is projected to burn through $150M in the 30 days post BK, so when the bondholders have exhausted all hope of a savior they will pull the plug. If not I would bet that the court will do so with their removal of the temporary stay for the lessors and and secured creditors.