Bankruptcy Risks Mount for AA
10-28-2020, 03:11 PM
#121
Perennial Reserve
Joined APC: Jan 2018
Posts: 11,503
Originally Posted by ZeroTT
Closest to the last option
i think when AA files chapter 11 there’s a chance some creditors may just take their property and walk. What happens if AA loses all their a320’s and all their lhr slots (mix and match collateral as you like)
Does it implode?
i think when AA files chapter 11 there’s a chance some creditors may just take their property and walk. What happens if AA loses all their a320’s and all their lhr slots (mix and match collateral as you like)
Does it implode?
https://www.jdsupra.com/legalnews/un...stry-an-44275/
https://www.ft.com/content/cc96f272-...6-65446ec237ed
Currently, the FAA is holding off on enforcing the 80% rule.
https://thepointsguy.com/news/airlin...laguardia-jfk/
But with airline travel UNIVERSALLY down, and scope limitations even paring back regional flights, the slots collateralizing these loans to airline could evaporate once the moratorium on enforcement is over. At that point it would become ‘use it or lose it’ Which coukd make holders of bonds backed by slots....twitchy.
10-28-2020, 03:50 PM
#122
Gets Weekends Off
Joined APC: Oct 2013
Posts: 1,045
Originally Posted by Mozam
First. You would be better off going to the bar to find DP
Second. It is not DP fault that AA has codeshare. APA gave it to him . I am sure he would be more than glad to give it back at a price .
Second. It is not DP fault that AA has codeshare. APA gave it to him . I am sure he would be more than glad to give it back at a price .
10-28-2020, 04:12 PM
#123
Gets Weekends Off
Joined APC: May 2020
Posts: 484
Originally Posted by ZeroTT
Closest to the last option
i think when AA files chapter 11 there’s a chance some creditors may just take their property and walk. What happens if AA loses all their a320’s and all their lhr slots (mix and match collateral as you like)
Does it implode?
i think when AA files chapter 11 there’s a chance some creditors may just take their property and walk. What happens if AA loses all their a320’s and all their lhr slots (mix and match collateral as you like)
Does it implode?
That’s highly unlikely. One taking your planes and walking mean selling them at a very large discount. My guess is AA has it pretty well prepackaged when/if they file. From everything the analyst are saying we have a while before we file.
10-28-2020, 05:01 PM
#124
Line Holder
Joined APC: Dec 2018
Posts: 91
Originally Posted by Downtime
That’s highly unlikely. One taking your planes and walking mean selling them at a very large discount. My guess is AA has it pretty well prepackaged when/if they file. From everything the analyst are saying we have a while before we file.
10-28-2020, 05:20 PM
#125
Gets Weekends Off
Joined APC: Dec 2012
Posts: 547
On the horns of a dilemma : shrink and infrastructure and debt cannot be managed. Hold to present size or thereabouts and the daily cash burn destroys the company.
Acid test - who would loan even more money to AAG with those prospects?
Acid test - who would loan even more money to AAG with those prospects?
10-28-2020, 09:02 PM
#127
Gets Everyday Off
Joined APC: Aug 2016
Position: Relaxed
Posts: 6,945
Originally Posted by Downtime
That’s highly unlikely. One taking your planes and walking mean selling them at a very large discount. My guess is AA has it pretty well prepackaged when/if they file. From everything the analyst are saying we have a while before we file.
10-28-2020, 10:10 PM
#128
Perennial Reserve
Joined APC: Jan 2018
Posts: 11,503
Originally Posted by TransWorld
Yes, the credit is collateralized by planes. Say, they were loaned to 80% of resale value. Now the the resale value has dropped to 10%. Banks do not like to hold onto planes for several years, for values to increase. So, not a good deal to take planes. just hold onto what you can, and take the altered terms.
10-28-2020, 10:25 PM
#129
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,160
Originally Posted by Mozam
Dude you are spun up tighter than a 8 day clock. I am guess the B,C,D and F scales at UAL have are putting you on the verge of going postal. Take a deep breath nut job.
You missed your calling as a politician.
10-28-2020, 10:30 PM
#130
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,160
Originally Posted by Downtime
That’s highly unlikely. One taking your planes and walking mean selling them at a very large discount. My guess is AA has it pretty well prepackaged when/if they file. From everything the analyst are saying we have a while before we file.
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