Originally Posted by
Releasemaster
When a company enters Chap.11, they list all their debt outstanding and who the creditors are. The companies first hurdle is to prove to the court they have enough money to continue operations or otherwise obtain DIP financing.
Beyond that is all becomes a court brokered negotation on re-negotiated costs and writing off what debt they can. Eventually the company comes to a sound restructuring and exits from the oversight of the courts and back into the public realm.
That's the old policy. Now the U.S. Bankruptcy Court requires DIP financing before the company can even file for CH.11. No DIP your going to CH.7! I really don't think JO can get DIP if MAG were to declare bankruptcy. I mean it's not like MAG is an integral part of the airline trasportation system like say Delta or American are. There are plenty of players to pick up the routes and contracts flown my MAG, so it's not like if MAG were to go into bankruptcy there would be a huge halt in flights across the U.S.