Originally Posted by
CHQ Pilot
Can you explain where people are coming up with a 100+ million to RAH? Not trying to be sarcastic; I'm just not understanding where the figures are coming from. There is the 40 million from the loan (which was essentially a refinance of previous debt) that gave RAH DIP rights which is secured. The BK judge awards that money out first and to any other secured creditors, of which there are many. RAH has a 150 million unsecured from claimed damages from the loss of the 170 contract. Since that is unsecured that is not a guarantee. I just don't see how RAH is guranteed 100+ million when they've only put 40 million in.
The unsecured creditors will get pennies on the dollar. The RAH plan of 108 million gave the unsecured creditors 10 cents on the dollar. So in theory the next bid by SWA should be higher. RAH will receive the $40 million Dip back plus interest and they will receive their 150 million at whatever rate the winner has planned. To reach 100 million the plan must be 40 cents on the dollar (and RAH must loose) which could happen if the bidding starts getting juicy especially if another bidder comes in but I doubt it.