Tic-Toc, Tic-Toc JO
11-13-2008 | 02:35 PM
#11
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From: CRJ 200/700/900 CA & Instructor
If Mesa files Chapt. 11 then Delta will pull their contract, and so will US Air. Not sure about United but both Delta and US Air dont want to have anything to do with them anymore. If Mesa goes bankrupt then its basically over for them.
11-13-2008 | 03:19 PM
#12
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From: CFI in training
11-13-2008 | 03:43 PM
#14
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From: NOYDB
When a company enters Chap.11, they list all their debt outstanding and who the creditors are. The companies first hurdle is to prove to the court they have enough money to continue operations or otherwise obtain DIP financing.
Beyond that is all becomes a court brokered negotation on re-negotiated costs and writing off what debt they can. Eventually the company comes to a sound restructuring and exits from the oversight of the courts and back into the public realm.
Beyond that is all becomes a court brokered negotation on re-negotiated costs and writing off what debt they can. Eventually the company comes to a sound restructuring and exits from the oversight of the courts and back into the public realm.
11-13-2008 | 03:46 PM
#15
Prime Minister/Moderator
Joined: Jan 2006
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From: Engines Turn or People Swim
With everyone looking to unload regional capacity in general, (and mesa in particular) a Ch.11 filing would provide an easy out for DAL for sure, USA almost for sure, and probably UAL as well.
Loss of even one major codeshare combined with very low propsects for DIP financing would almost certainly cause a judge to shut them down if they file Ch.11.
For this reason I think JO will not intentionally attempt to use Ch.11 as a reorganization tool. He'll probably go kicking and screaming straight into Ch.7, following FBI raids on the Crystal Palace.
11-13-2008 | 03:48 PM
#16
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From: NOYDB
This is a critical point. Naturally nobody wants a contractual committment to bankrupt regional feeder, so that is a routine contract clause.
With everyone looking to unload regional capacity in general, (and mesa in particular) a Ch.11 filing would provide an easy out for DAL for sure, USA almost for sure, and probably UAL as well.
Loss of even one major codeshare combined with very low propsects for DIP financing would almost certainly cause a judge to shut them down if they file Ch.11.
For this reason I think JO will not intentionally attempt to use Ch.11 as a reorganization tool. He'll probably go kicking and screaming straight into Ch.7, following FBI raids on the Crystal Palace.
With everyone looking to unload regional capacity in general, (and mesa in particular) a Ch.11 filing would provide an easy out for DAL for sure, USA almost for sure, and probably UAL as well.
Loss of even one major codeshare combined with very low propsects for DIP financing would almost certainly cause a judge to shut them down if they file Ch.11.
For this reason I think JO will not intentionally attempt to use Ch.11 as a reorganization tool. He'll probably go kicking and screaming straight into Ch.7, following FBI raids on the Crystal Palace.
11-13-2008 | 04:07 PM
#18
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Joined: Jul 2008
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Best case is they start selling stuff..Would they rather keep GO! or there United/USair flying. I think they could sell off there east coast flying to AirWilly and maybe The west coast flying to SkyWest. Or its a free for all when they fill Ch.11. Or someone puts up allot of money and bails them out.
11-13-2008 | 04:27 PM
#20
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From: CRJ 200/700/900 CA & Instructor
Yup, there will be alot of Mesa pilots on the streets. But they maybe able to find another job relatively quick becasue their will probably be airlines calling back and maybe hiring to cover their flying. PSA, Piedmont, and Air Wisconsin would get alot of their guys back for the US Airways flying. Im sure Skywest will cover the United side. Mesaba will hire more pilots becasue Im sure that the Delta flying will go to them and not Comair. If they do give it to Comair then they will get to recall their pilots. RAH will probably get all of their pilots back.
