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Originally Posted by StoneQOLdCrazy
(Post 3841962)
so could someone in theory buy all Spirit stock for say, 150M?
seems like gaining a controlling interest and breaking up/selling off pieces would be quite lucrative at this price. How much is the HQ building alone worth? |
Originally Posted by StoneQOLdCrazy
(Post 3841962)
so could someone in theory buy all Spirit stock for say, 150M?
seems like gaining a controlling interest and breaking up/selling off pieces would be quite lucrative at this price. How much is the HQ building alone worth? US Global Jets ETF https://app.quotemedia.com/data/down...led=2024-10-04 |
Originally Posted by planejoe
(Post 3841942)
Wouldn't a judge be instructing to sell assets to pay debtors? I guess all of that can be negotiated, not sure how it works.
The judge certainly could order a liquidation and fire sale of assets. If the creditors and judge don't see a profitable way forward, they might lean to fire sale. If they think the company can restructure so as to be able to make future payments, likely negotiated to a reduced level, they might opt for that. |
Originally Posted by PineappleXpres
(Post 3841964)
Then don’t you own the debt too?
It's common for managers to not carry a lot of cash on hand, and to balance the owned-outright assets against leases, etc to avoid creating a tempting target for hostile takeover by corporate raiders. For example if you have $10B in cash, and the stock market has a bad day anybody could swoop in and buy a controlling interest for pennies on the dollar, just to tap the cash. So debt often serves as a poison pill to discourage the worst sort of corporate predation. Caveat: With a large major airline, presumably the government would at least attempt to intervene to prevent blatant corporate raidership. But that depends on who's in office, and the current industry climate. So airlines are probably less exposed to it than other industries. |
Originally Posted by PineappleXpres
(Post 3841964)
Then don’t you own the debt too?
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in airline-world, anything is possible. This includes, some or all, of:
1. Ch.11 Bankruptcy filing 2. Attempted acquisition by another airline 3. Investment group (RE: Elliott Management type) buy the company At the current share price, Spirit's market cap is 245M. |
Originally Posted by Halon1211
(Post 3841642)
I’m not entertained myself. Theses are fairly accurate numbers.
tell me honestly, what did you think was going to happen with 1/4 of our fleet being parked? new hire classes being announced?! |
Originally Posted by hercretired
(Post 3841996)
in airline-world, anything is possible. This includes, some or all, of:
1. Ch.11 Bankruptcy filing 2. Attempted acquisition by another airline 3. Investment group (RE: Elliott Management type) buy the company At the current share price, Spirit's market cap is 245M. Bankruptcy has always been inevitable once the merger failed. The CEO lied to you guys and put you in denial. Anyone not affected can see it coming. |
Originally Posted by hockeypilot44
(Post 3842033)
It’s also possible to just shut down. Midwest Express, ATA, Braniff, numerous regionals, etc. it has happened before.
Bankruptcy has always been inevitable once the merger failed. The CEO lied to you guys and put you in denial. Anyone not affected can see it coming. |
Originally Posted by BKbigfish
(Post 3842045)
Thanks Delta guy. This is very helpful. Any other wisdom you’d like to share with us today?
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