Pumperpilot

Is this the start of what we all knew was going to happen?

https://news.bloomberglaw.com/bankru...id-cash-crunch

WGTruth

There are still many employees who refuse to believe what's going on. They think that if they can silence the truth-tellers on the internet, then everything will be okay. Management and a small group of pilots are still laser-focused on decertifying ALPA, rather than concentrating their efforts on surviving this financial crisis.

Here's what Bloomberg Law had to say in their Bankruptcy Law News section on Wednesday: "Western Global Airlines LLC has begun confidential negotiations with some of its creditors over its financing needs, according to people with knowledge of the situation. The air cargo provider is working with restructuring advisers Weil Gotshal & Manges and Evercore Inc. to examine options, which could include selling some of its engines to raise money...."

Selling engines may help cover the bond coupon payments due in August, but this isn't a sustainable, long-term solution. The true problem is a debt level that is far higher than the value of the company. The owner saddled the company with this debt so that he could cash out. He used the ESOP to force his employees to buy 1/3 of his company at an insanely high price. While the airline may be in serious trouble, the owner is doing just fine, thanks. He's pocketed the cash that was raised via the bond offering and having the company go down in flames will likely not damage him at all. I sincerely hope that any restructuring will require the owner to step away from the airline.