Republic after the contract
03-25-2016 | 09:12 AM
#651
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Thank you captain obvious...
I never once have disagreed with that. Since the filing, I have been one of the ones saying this will be a straight forward BK with the goal to get out of the Q400/ERJ leases and to try and get higher rates with the majors. And so far that has been exactly the case.
But just because Delta has now given a loan, people are saying Delta owns Republic or that the UA/AA is done, when that simply is not true.
I never once have disagreed with that. Since the filing, I have been one of the ones saying this will be a straight forward BK with the goal to get out of the Q400/ERJ leases and to try and get higher rates with the majors. And so far that has been exactly the case.
But just because Delta has now given a loan, people are saying Delta owns Republic or that the UA/AA is done, when that simply is not true.
03-25-2016 | 09:27 AM
#652
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This money just put Delta in the driver's seat when it comes to saying how Republic is run. Delta is now the largest single financial stakeholder at Republic. With this development who do you think a bankruptcy judge is going to side with when it comes to the cutting of any contract that doesn't help Delta?
Remember if you have any questions just look at news articles from 4 years ago. This has all happened before.
03-25-2016 | 09:47 AM
#653
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This exact thing happened just 4 a years ago. Delta provided financing then told pinnacle holdings to shut Colgan down.
This money just put Delta in the driver's seat when it comes to saying how Republic is run. Delta is now the largest single financial stakeholder at Republic. With this development who do you think a bankruptcy judge is going to side with when it comes to the cutting of any contract that doesn't help Delta?
Remember if you have any questions just look at news articles from 4 years ago. This has all happened before.
This money just put Delta in the driver's seat when it comes to saying how Republic is run. Delta is now the largest single financial stakeholder at Republic. With this development who do you think a bankruptcy judge is going to side with when it comes to the cutting of any contract that doesn't help Delta?
Remember if you have any questions just look at news articles from 4 years ago. This has all happened before.
$75 million is too little for RAH, even in Bankruptcy. I have a feeling Embraer, Brazilian Export Bank, or even Citigroup would have put up more than that if it were going to take a controlling interest in the entity.
I understand the similarities that your are correlating, but they are apples to oranges.
03-25-2016 | 09:55 AM
#654
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With all due respect, our bankruptcy at 9E was much different. We were on the brink of Chapter 7 liquidation, not 11. We had less than $40 in cash and cash equivalents when we filed. We needed the DIP financing just to keep making payroll.
$75 million is too little for RAH, even in Bankruptcy. I have a feeling Embraer, Brazilian Export Bank, or even Citigroup would have put up more than that if it were going to take a controlling interest in the entity.
I understand the similarities that your are correlating, but they are apples to oranges.
$75 million is too little for RAH, even in Bankruptcy. I have a feeling Embraer, Brazilian Export Bank, or even Citigroup would have put up more than that if it were going to take a controlling interest in the entity.
I understand the similarities that your are correlating, but they are apples to oranges.
Now I understand dip financing isn't actually a purchase of the company but of delta wanted to buy it at its current price it would have been cheaper than what delta just did.
03-25-2016 | 10:02 AM
#655
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I am simply going to agree to disagree that it is an apples to oranges comparison since I don't believe I could convince you otherwise. However, by all intense and purposes delta actually overpaid by 15.9 million since RJET's current market cap is only 59.1 millon.
Now I understand dip financing isn't actually a purchase of the company but of delta wanted to buy it at its current price it would have been cheaper than what delta just did.
Now I understand dip financing isn't actually a purchase of the company but of delta wanted to buy it at its current price it would have been cheaper than what delta just did.
03-25-2016 | 10:09 AM
#656
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Please correct me if I'm wrong but if I bought a controlling share of stock. Something that, at current book, would cost me less than 30 mil. I couldn't say "nevermind we don't need bankruptcy protection and we'll meet our current debt obligations" then proceed as business as usual?
03-25-2016 | 10:24 AM
#657
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In bankruptcy stock holders are irrelevant. The people who drive the process are the creditors which are the folks who own the debt. They tell the judge what they want to see and how they want to get repaid. Sometimes liquidating the company is better, sometimes taking a haircut on the debt to get the remaining amount back is the better option.
This is nothing new. Air Wisconsin did this on a slightly larger scale with US Airways. They gave them a DIP loan and turned around and sold the issued stock in return for the DIP repayment for around 4x what they loaned out. Their loan was guaranteed by assets so it was basically a lose nothing, win big kind of thing.
This is nothing new. Air Wisconsin did this on a slightly larger scale with US Airways. They gave them a DIP loan and turned around and sold the issued stock in return for the DIP repayment for around 4x what they loaned out. Their loan was guaranteed by assets so it was basically a lose nothing, win big kind of thing.
03-25-2016 | 10:27 AM
#658
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Joined: Jul 2008
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In bankruptcy stock holders are irrelevant. The people who drive the process are the creditors which are the folks who own the debt. They tell the judge what they want to see and how they want to get repaid. Sometimes liquidating the company is better, sometimes taking a haircut on the debt to get the remaining amount back is the better option.
This is nothing new. Air Wisconsin did this on a slightly larger scale with US Airways. They gave them a DIP loan and turned around and sold the issued stock in return for the DIP repayment for around 4x what they loaned out. Their loan was guaranteed by assets so it was basically a lose nothing, win big kind of thing.
This is nothing new. Air Wisconsin did this on a slightly larger scale with US Airways. They gave them a DIP loan and turned around and sold the issued stock in return for the DIP repayment for around 4x what they loaned out. Their loan was guaranteed by assets so it was basically a lose nothing, win big kind of thing.
03-25-2016 | 10:29 AM
#659
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Joined: Jul 2008
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I am simply going to agree to disagree that it is an apples to oranges comparison since I don't believe I could convince you otherwise. However, by all intense and purposes delta actually overpaid by 15.9 million since RJET's current market cap is only 59.1 millon.
Now I understand dip financing isn't actually a purchase of the company but of delta wanted to buy it at its current price it would have been cheaper than what delta just did.
Now I understand dip financing isn't actually a purchase of the company but of delta wanted to buy it at its current price it would have been cheaper than what delta just did.
If the creditors committee decides to honor common stock holders, which is rare (AA BK), then those on the other side would get pennies on the dollar. DLs investment is a loan, not a purchase agreement.
03-25-2016 | 10:31 AM
#660
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