Frontier
 

Anyone have info on how Frontier is coming along with their restructuring and is there and exit date for them to come out of Chap 11? Just sent my resume in to Lynx but I'm not sure how the mother ship is doing. Thanks and good luck to all.

Unfortunately, the folks I know over there expect to exit chapter 11 later this year...by liquidating the company, if fuel prices don't come down.

Nah, Rick....no Chp. 7 for them, if fuel doesn't come down??? Really???

A couple of pilot friends from Frontier told me that Frontier reported loss of $33 million in April/May (thats without paying most of it's bills), cash is going fast & the markets are not willing to provide Frontier with additional financing & the furloughs announced are probably just the beginning.

I sure do hate to see it, but it looks like Chapter 7 unfortunately may be the only exit for Frontier.

Looks like this fuel crisis is going to eliminate a great pilot group and a good company overall. Times suck!

The problem with going BK nowadays is that no one wants to throw money into an airline when it's pretty obvious that the whole industry can't cope with fuel prices like they are now.

UAL could be in the same boat by the end of the year. Not much left to mortgage and little prospects for getting any kind of profit in the future. Not a whole lot of lenders who see that as a good risk.

The airline industry is in a high stakes game of "last man standing."

Last man standing indeed

Seem like Frontier would be a good merger partner for someone smaller, like JBlue or AirTran, but I guess at this point it's just cheaper and easier to sit back and then buy the assets in a liquidation fire sale.

I understand that after declaring Chapter 11, Frontier was given a 30 day moratorium on making their debt payments. As soon as that 30 day period was over, they began to make their payments again on schedule. So, if that is true, they have only enough cash to do this and to make their payroll and rents/leases which presumably were negotiated to lower amounts in Chapter 11.

WheelsUp - You wrote

>>UAL could be in the same boat by the end of the year. Not much left to mortgage<<

I am told that United's umencumbered assets are greater than any of the other major carriers, except for American and Southwest. Have you heard differently?

None of the U.S.carriers have a bright prospect, but United's is bad mostly due to extremely poor (and greedy) management, in my opinion.

UAL appears to be in better shape to survive the current short-term bleeding out process than many other airlines. Us Air and AA were listed as most vulnerable among the legacies.

This has nothing to do with management, product, or business strategy, only short-term liquid assets vs. short-term obligations. Again, it's simply about rapid bleeding out...nobody will have time to really re-engineer their business to adapt to the new price of oil.

Airways is probably weak on cash from the merger, AA because they didn't do CH.11 when it was all the rage.

DIP financing?
 

1.) Has Frontier secured DIP financing yet?

2.) If they haven't secured this financing, which must be hard to come by w/ the current credit crisis, what are their options?