Originally Posted by
FriendlyPilot
The bondholders are not decision makers at the company. They don't decide these things. Management runs the company. Also the bondholders just got burned because they converted a bunch of their previous debt to equity during BK1 and that equity is already wiped out with this BK. No idea how much of their shares they sold, but likely not much.
I'm guessing other entities can see what Spirit management just did to a group that came in to help out and don't want the same thing to happen to themselves.
When you file chapter 11 management relinquishes control of the company. The judge and creditors committee now control the airline. They might cede daily operational control to management but the big choices are no longer in management’s hands. That is how Parker came within one vote of the creditors committee to own Delta airlines.