Republic after the contract

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03-25-2016 | 10:33 AM

#661

GoHomeLeg

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Quote:

Originally Posted by SmitteyB

Common stock value is $0 in bankruptcy.

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.

I understand it's a loan not an outright purchase. Thanks for clearing up the other thing. Continue...

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03-25-2016 | 10:41 AM

#662

thump

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From: ERJ-170 CA

Quote:

Originally Posted by SmitteyB

Not to mention it was also guaranteed by a 10 year capacity purchase agreement. Brilliant move by those in Appleton.

As did Republic when US Airways and Frontier went bankrupt.

03-25-2016 | 10:43 AM

#663

gojo

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Quote:

Originally Posted by GoHomeLeg

I understand it's a loan not an outright purchase. Thanks for clearing up the other thing. Continue...

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To call it a loan really over simplifies a debtor in possession

03-25-2016 | 10:58 AM

#664

Base2Final

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From: Crop duster

I think y'all can agree on ONE thing.......ya don't know *** is going on. First it was "bail out, ships sinking - I've been through x amount of bk's at x amount of airlines.......ur NUTZ if ya don't think they're gonna go after ur cba.......envoy, endeavor, skywest (insert any regional) is gonna get all rahs 170/175's.......deltas buying rah.....endeavor is merging with rah.......shake an 8 ball, it's got as good a shot at predicting what is going to happen to the broken regional model as all the rest of the posters on here that have all the answers. Jesus. Go drink a beer and get lay'd. It's btr for ur health.

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03-25-2016 | 10:59 AM

#665

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From: Broke

Quote:

Originally Posted by SmitteyB

Not to mention it was also guaranteed by a 10 year capacity purchase agreement. Brilliant move by those in Appleton.

That cpa can be voided in bankruptcy by either party.

03-25-2016 | 11:01 AM

#666

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From: Broke

Quote:

Originally Posted by Tpinks

You seem to be forgetting that republic does not need 75 million to keep flying. As of 3/16/2016, republic has 146 million dollars in investment funds that can be liquified over night if need be. In total RJET has a cash balance of ~172 million dollars.

As I posted in the other thread, this is a secured loan with liens placed on a single E170, 12 spare engines as well as a few other assets. It's terms are 5.75% simple interest plus 1% upfront for up to 1 year or upon exiting BK, whichever is sooner.

172 million and 500 million in liabilities. It doesn't matter how much cash you have on hand if you can't pay the bills.

03-25-2016 | 11:05 AM

#667

Mesabah

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Way too early in the process to see where this is going. Right now Delta's DIP is filed as credit to keep the E170 operation running, while getting out of the E145 operation, and a few other things. No way Delta has the ability to cover the loss of the E170's, which would amount to significantly more than $75 million.

03-25-2016 | 11:11 AM

#668

gojo

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Quote:

Originally Posted by Base2Final

You're correct in the fact that we have no control of the outcome here. It's called uncontrollable stress, but it is stressful non the less. Burying your head in the sand and not learning about the process and the possible outcomes is not smart either