Originally Posted by
DirkDiggler9999
I disagree. There’s risk to the investors as NK continues to lose money. You’re right, none of us were in the board room but there has been zero purchase offers, just AA buying two gates. Operationally, NK continues to lose lots of money. Is the $50M an opportunity to see how paycuts will affect the bottom line? Maybe. Frontier is not in a good financial position and their pilots are frustrated in contract negotiations. The lack of $100M tells me that investors are not completely convinced of success but essentially will give NK another month with half the cash. Hoping it will be a successful month with no speed bumps. If not, I think the cash stops.
Well, it's either exactly that; that there is frustration from the lenders and they're at the end of their rope giving us money and this is the last chance to show.. anything good..
Or possibility B is just that the lenders are using leverage to, perhaps, force the board of directors and management to get across the finish line with a merger deal they may not love..
At this point, I agree with comments made here.. Spirits board and management, at current cash burn was, effectively given two weeks to make a decision (from a DIP perspective, do the thing that gets them their most money back)..