How long will it last?
10-19-2020 | 04:03 PM
#222
Gets Weekends Off
Joined: Sep 2019
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Very risky, but cheap so kind of like a lottery ticket. The speculators that bought the AMR shares for pennies cleaned up but they could have easily lost their entire investment. It depends on how much is left after the secured creditors pick the bones.
10-19-2020 | 04:15 PM
#223
Perennial Reserve
Joined: Jan 2018
Posts: 14,253
Likes: 257
https://www.investopedia.com/terms/v/vulturefund.asp
They will even go after countries...
https://qz.com/707165/wall-streets-v...lobal-economy/
10-19-2020 | 04:25 PM
#224
Gets Weekends Off
Joined: Sep 2019
Posts: 1,538
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There is, however, a significant subset of the financial hedge fund world called “vulture funds”;that routinely buy up the bonds of distressed companies in - or headed for - bankruptcy, then send their lawyers in to harass the process until the bankruptcy court gives them a split of the spoils that generally although not invariably gives them a healthy profit.
https://www.investopedia.com/terms/v/vulturefund.asp
They will even go after countries...
https://qz.com/707165/wall-streets-v...lobal-economy/
https://www.investopedia.com/terms/v/vulturefund.asp
They will even go after countries...
https://qz.com/707165/wall-streets-v...lobal-economy/
Oh yeah, I was not advocating the strategy. Buying that stock should be play money. The bond holders and lenders usually pick the bones clean and there is nothing left for mom and pop. I always tell my friends to never invest in airlines for good reason.
10-19-2020 | 05:03 PM
#225
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Joined: Dec 2007
Posts: 618
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No because what happened last isn’t the norm. I like speculate but to much debt this go around for me to play this one. I would have to go back and look at the financials from the last BK but my guess is it wasn’t as bad. Someone else here might be able to answer that. If it wasn’t for the merger my guess is no one would have got paid. If you have some mattress money go for it, just don’t except to get the same results. Just don’t buy now, you need to buy them in BK.
10-19-2020 | 05:54 PM
#226
Perennial Reserve
Joined: Jan 2018
Posts: 14,253
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American plans to operate normally while in bankruptcy, but the Chapter 11 filing could punch a hole in the pensions of roughly 130,000 workers and retirees.
AMR pension plans are $10 billion short of what the carrier owes, and any default could be the largest in U.S. history, government pension insurers estimated.
“They were proactive,” Neidl said. “They should have adequate cash reserves to get through this.”
Ray Neidl, aerospace analyst at Maxim Group, said a lack of progress in contract talks with pilots tipped the carrier into Chapter 11, though it has enough cash to operate. The carrier’s passenger planes average 3,000 daily U.S. departures.
In its bankruptcy petition filed in Manhattan, AMR reported assets of $24.72 billion and liabilities of $29.55 billion. The company has $4.1 billion in cash.
One bankruptcy rule is “don’t wait too long,” Harvey Miller, a partner at Weil, Gotshal & Manges representing AMR, said at a court hearing. “Don’t wait until the course is irreversible. That is what American Airlines is doing today.”
AMR’s bankruptcy filing showed few details about how the company would proceed, said Stephen Selbst, a bankruptcy attorney with Herrick Feinstein in New York.
“It’s possible they are still in negotiations and don’t want to put something on paper that might prejudice those negotiations,” he said.
Experts believe AMR stands to save billions by restructuring its obligations in bankruptcy.
AMR pension plans are $10 billion short of what the carrier owes, and any default could be the largest in U.S. history, government pension insurers estimated.
“They were proactive,” Neidl said. “They should have adequate cash reserves to get through this.”
Ray Neidl, aerospace analyst at Maxim Group, said a lack of progress in contract talks with pilots tipped the carrier into Chapter 11, though it has enough cash to operate. The carrier’s passenger planes average 3,000 daily U.S. departures.
In its bankruptcy petition filed in Manhattan, AMR reported assets of $24.72 billion and liabilities of $29.55 billion. The company has $4.1 billion in cash.
One bankruptcy rule is “don’t wait too long,” Harvey Miller, a partner at Weil, Gotshal & Manges representing AMR, said at a court hearing. “Don’t wait until the course is irreversible. That is what American Airlines is doing today.”
AMR’s bankruptcy filing showed few details about how the company would proceed, said Stephen Selbst, a bankruptcy attorney with Herrick Feinstein in New York.
“It’s possible they are still in negotiations and don’t want to put something on paper that might prejudice those negotiations,” he said.
Experts believe AMR stands to save billions by restructuring its obligations in bankruptcy.
10-19-2020 | 06:10 PM
#227
Gets Everyday Off
Joined: Aug 2016
Posts: 6,995
Likes: 1
From: Fully Retired
I say you know how to become a millionaire investor in airline stocks? Start by investing multi millions.
10-19-2020 | 08:30 PM
#228
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Joined: Dec 2019
Posts: 216
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As of last month we had $16.2 bill liquidity. We can survive until ‘22 at current burn rates. If we get either a much better demand market or govt help, we should be able to pull out of the spin. If neither happen then hard choices must be made by top men, not us. I’m sour about a mgmt team that took on this debt to begin with, but this company had 10% of global travelers last year, don’t quit and go home yet. Better days are ahead and my bet is our furloughed colleagues will be back next summer.
10-20-2020 | 04:46 AM
#230
Thread Starter
Gets Weekends Off
Joined: Jan 2009
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As of last month we had $16.2 bill liquidity. We can survive until ‘22 at current burn rates. If we get either a much better demand market or govt help, we should be able to pull out of the spin. If neither happen then hard choices must be made by top men, not us. I’m sour about a mgmt team that took on this debt to begin with, but this company had 10% of global travelers last year, don’t quit and go home yet. Better days are ahead and my bet is our furloughed colleagues will be back next summer.
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