Originally Posted by
FriendlyPilot
So its not a merger with Frontier. Its still just Spirit but with a different owner. This way if it fails Frontier isn't burdened by the debt nor the employee bloat from bringing over all the employees. Indigo could just sell assets to Frontier and not transfer any employees over.
My question is why do the bondholders of Spirit just have the assets go somewhere else and not liquidate them to replay what they are owed?
The big question is how F9 handles all of the NK debt. F9 is not rolling in the dough by any means and it gives thought to the Biffle departure from F9. I think F9 is better buying assets than the whole chunk to avoid major strain on the balance sheet. Time will tell and time is not on NKs side. NK really doesn’t have room to negotiate and F9 would essentially be buying a boatload of debt. Still begs the question, why? Is F9 just trying to take a look at the books? Or does F9 want to be strategic about what parts they want to avoid employee integration? Maybe they just want to roll the dice and take it all? We will know shortly. If F9 backs away, I do believe NK liquidates.