View Poll Results: Will AA declare bankruptcy?
Yes
219
70.65%
No
91
29.35%
Voters: 310. You may not vote on this poll
Bankruptcy
11-20-2021 | 08:38 AM
#791
Gets Weekends Off
Joined: Jul 2011
Posts: 2,450
Likes: 0
From: Airbus button pusher
11-20-2021 | 08:49 AM
#792
Perennial Reserve
Joined: Jan 2018
Posts: 14,237
Likes: 254
Chapter 7 is an exceedingly unlikely event. Reorganization under Chapter 11 with bankruptcy judge enforced concessionary contracts as happened ten years ago is unfortunately less unlikely, something that should concern pilots at all airlines since we all live and die by pattern bargaining.
11-20-2021 | 09:11 AM
#793
Gets Everyday Off
Joined: Aug 2016
Posts: 6,995
Likes: 1
From: Fully Retired
Chapter 7 is insolvency forced by the creditors. The company shuts its doors, and no longer exists. The stockholders get nothing. Everyone it is owed (creditors) divides up the money and sells off all the equipment. Everyone goes home extremely grumpy.
Chapter 11 is reorganization. The stockholders usually get nothing. Union contracts may get changed. Pilot pay rates, as an example, may be reduced. Creditors get new payment schedules renegotiated. As an example, they may get interest payments only the next 5 years before principal repayments starts. It is possible they sell off a portion of the business. But, they re-emerge as a company continuing operations. They live to see another day. Employees (or at least some of the employees) are still employed. People go home somewhat grumpy.
Chapter 11 is reorganization. The stockholders usually get nothing. Union contracts may get changed. Pilot pay rates, as an example, may be reduced. Creditors get new payment schedules renegotiated. As an example, they may get interest payments only the next 5 years before principal repayments starts. It is possible they sell off a portion of the business. But, they re-emerge as a company continuing operations. They live to see another day. Employees (or at least some of the employees) are still employed. People go home somewhat grumpy.
11-20-2021 | 09:14 AM
#794
Line Holder
Joined: Oct 2010
Posts: 1,990
Likes: 184
Chapter 7 is insolvency forced by the creditors. The company shuts its doors, and no longer exists. The stockholders get nothing. Everyone it is owed (creditors) divides up the money and sells off all the equipment. Everyone goes home extremely grumpy.
Chapter 11 is reorganization. The stockholders usually get nothing. Union contracts may get changed. Pilot pay rates, as an example, may be reduced. Creditors get new payment schedules renegotiated. As an example, they may get interest payments only the next 5 years before principal repayments starts. It is possible they sell off a portion of the business. But, they re-emerge as a company continuing operations. They live to see another day. Employees (or at least some of the employees) are still employed. People go home somewhat grumpy.
Chapter 11 is reorganization. The stockholders usually get nothing. Union contracts may get changed. Pilot pay rates, as an example, may be reduced. Creditors get new payment schedules renegotiated. As an example, they may get interest payments only the next 5 years before principal repayments starts. It is possible they sell off a portion of the business. But, they re-emerge as a company continuing operations. They live to see another day. Employees (or at least some of the employees) are still employed. People go home somewhat grumpy.
11-20-2021 | 09:33 AM
#795
Gets Weekends Off
Joined: Jul 2011
Posts: 2,450
Likes: 0
From: Airbus button pusher
Chapter 7 is an exceedingly unlikely event. Reorganization under Chapter 11 with bankruptcy judge enforced concessionary contracts as happened ten years ago is unfortunately less unlikely, something that should concern pilots at all airlines since we all live and die by pattern bargaining.
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