Objection 2 Delta's DIP financing 4 Pinnacle
04-25-2012 | 06:44 AM
#11
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From: Port of Indecision and Southwest of Disorder
Yeah, this motion will be rejected because it would cause Chapter 7. As I've said before, Delta bankrupted us by not paying us for the merger costs. This is because Colgan was integrated in, and Delta was not going to pay for any of that.
Now Delta sees an opportunity here for us and it is not related to parking 200's; The question is, what is that plan? My guess would be it has something to do with Comair.
Now Delta sees an opportunity here for us and it is not related to parking 200's; The question is, what is that plan? My guess would be it has something to do with Comair.
I agree, Comair could very well be a part of the "big picture."
04-25-2012 | 06:58 AM
#13
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From: retired
Yeah, this motion will be rejected because it would cause Chapter 7. As I've said before, Delta bankrupted us by not paying us for the merger costs. This is because Colgan was integrated in, and Delta was not going to pay for any of that.
Now Delta sees an opportunity here for us and it is not related to parking 200's; The question is, what is that plan? My guess would be it has something to do with Comair.
Now Delta sees an opportunity here for us and it is not related to parking 200's; The question is, what is that plan? My guess would be it has something to do with Comair.
04-25-2012 | 07:16 AM
#15
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From: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
If you look at the 13 week budget Pinnacle posted, as of Friday 4/27 we'll still have 35.5 mil in cash without any DIP. If Delta would have paid us the 18 mil from last year and about 5 mil for the 4 months of this year, that's an additional 23 mil for a total of 58 million in cash.
I think CNBC should add this to their "American Greed" show.
I think CNBC should add this to their "American Greed" show.
Recall that Delta was the only lender of last resort. There was no choice. There is also the issue of Pinnacle's ratification of the agreement and the fact that the parties objecting to this arrangement having no other real plan for revenue outside of Delta. Common holders of equity get wiped out ... ask investors in Fannie Mae, Freddie Mac, Lehman, or even Delta Air Lines prior to 2005.
If Delta's DIP motion is set aside as a result of this motion, I'd expect the result for the Company to be a dissolution.
04-25-2012 | 07:19 AM
#16
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From: B757/767
Chapter 7 has been thrown around a lot in these threads, but you need to remember the impact of pinnacle liquidating. We operate roughly 190(not sure) planes for one carrier. Forget the fact that its our DIP provider for a second. If we liquidate, now correct me if I'm wrong, those planes stop flying immediately right? That would have a huge impact on the transportation system and I doubt any federal judge would want a part in that. Second, how much does pinnacle have in liquid assets? I would venture to guess that it wouldn't come close to covering even a fraction of the debt. I don't think one creditor will be able to sway the dip loan. Now if all the creditors teamed up I think we would have something to worry about.
Now I'm starting to see why Menke is leaving. Maybe he didn't want to be any part of this sham tactic. They wanted him to do something he didn't agree with and stood up for himself while Spanjers was in the background cutting deals with Daddy D.
Now I'm starting to see why Menke is leaving. Maybe he didn't want to be any part of this sham tactic. They wanted him to do something he didn't agree with and stood up for himself while Spanjers was in the background cutting deals with Daddy D.
04-25-2012 | 07:21 AM
#17
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From: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
I'm not saying this is a result of Colgan's accident, but knowing how upset the risk management side of the business were, it would not surprise me.
04-25-2012 | 07:50 AM
#18
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From: Taco Rocket Operator
Sounds like the shareholders sniffed out the shenanigans that Delta has been pulling. The only problem with stopping Delta's DIP is nobody else was willing to step up (so we have been told) If the objection is upheld, would we not likely have to move to Chaper 7 since there will be no financing to continue operations?
Exactly. Could be why Menke et al have been jumping ship. I always thought it was weird that a creditor was giving us financing in bankruptcy. Not surprised the other creditors are raising a stink about this. The court is required to give all creditors equal standing by the bankruptcy statute. I'm surprised DL and 9E management haven't done more to keep them all on board. This motion has a good chance of being approved. If it is and we have no DIP financing it could be Chapter 7 time.....
04-25-2012 | 07:56 AM
#19
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From: Taco Rocket Operator
Chapter 7 has been thrown around a lot in these threads, but you need to remember the impact of pinnacle liquidating. We operate roughly 190(not sure) planes for one carrier. Forget the fact that its our DIP provider for a second. If we liquidate, now correct me if I'm wrong, those planes stop flying immediately right? That would have a huge impact on the transportation system and I doubt any federal judge would want a part in that. Second, how much does pinnacle have in liquid assets? I would venture to guess that it wouldn't come close to covering even a fraction of the debt. I don't think one creditor will be able to sway the dip loan. Now if all the creditors teamed up I think we would have something to worry about.
Now I'm starting to see why Menke is leaving. Maybe he didn't want to be any part of this sham tactic. They wanted him to do something he didn't agree with and stood up for himself while Spanjers was in the background cutting deals with Daddy D.
Now I'm starting to see why Menke is leaving. Maybe he didn't want to be any part of this sham tactic. They wanted him to do something he didn't agree with and stood up for himself while Spanjers was in the background cutting deals with Daddy D.
Doesn't matter who it affects or how bad it hurts the transportation system. If the Judge approves this motion (and there is a good chance he will) then the DIP financing goes away. If Menke was telling the truth about the company finances and the denials of DIP financing from normal lending institutions, you would be looking at a shutdown in a couple of weeks. No cash company can't operate period, no matter who it hurts.
04-25-2012 | 08:00 AM
#20
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From: Taco Rocket Operator
Yeah, this motion will be rejected because it would cause Chapter 7. As I've said before, Delta bankrupted us by not paying us for the merger costs. This is because Colgan was integrated in, and Delta was not going to pay for any of that.
Now Delta sees an opportunity here for us and it is not related to parking 200's; The question is, what is that plan? My guess would be it has something to do with Comair.
Now Delta sees an opportunity here for us and it is not related to parking 200's; The question is, what is that plan? My guess would be it has something to do with Comair.
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