Spirit Now Sure As It Emerges From Bankruptcy
04-08-2025 | 05:50 AM
#61
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10 billion or so in assets, however, fully encumbered by the people that own our debt. That shouldn't be so difficult to understand.
If they liquidate, they will not get 10 billion though. That's obvious but judging by some of these responses I'm getting, clarification seemed necessary.
If they liquidate, they will not get 10 billion though. That's obvious but judging by some of these responses I'm getting, clarification seemed necessary.
04-08-2025 | 06:40 AM
#62
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04-08-2025 | 08:07 AM
#63
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From: Engines Turn or People Swim
There's a big difference between proactively buying it all, with a plan to do stuff with it (plan might include subsequently divesting some assets) vs. hoping that NK will liquidate and then hoping you're the highest bidder for the stuff you want.
If we go into a recession, that won't be good... lower odds of success for NK's new plan, and also lower odds that another airline will be in both the mood and financial position for M&A.
04-08-2025 | 09:12 AM
#64
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He's getting it from the 10-k. 9.595 is the total listed assets. It includes right of use assets (leases). They are offset by the liability of the payments and make up about half of the assets listed.
04-08-2025 | 09:26 AM
#65
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from a historical standpoint, recessions increase the likelihood of consolidation
04-08-2025 | 10:05 AM
#66
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From: Engines Turn or People Swim
But in this century only the DL/NW merger was initiated in a recession, and both had recently completed Ch.11. I'm talking about major airlines only.
Airlines are more susceptible to economic fluctuations than some other sectors, and while downturns *always* create potential opportunity you need cash and some sense of security/stability in your own position to go out on that kind of a limb.
04-08-2025 | 04:43 PM
#67
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In general.
But in this century only the DL/NW merger was initiated in a recession, and both had recently completed Ch.11. I'm talking about major airlines only.
Airlines are more susceptible to economic fluctuations than some other sectors, and while downturns *always* create potential opportunity you need cash and some sense of security/stability in your own position to go out on that kind of a limb.
But in this century only the DL/NW merger was initiated in a recession, and both had recently completed Ch.11. I'm talking about major airlines only.
Airlines are more susceptible to economic fluctuations than some other sectors, and while downturns *always* create potential opportunity you need cash and some sense of security/stability in your own position to go out on that kind of a limb.
I don’t think there will be a cash offer. It’s going to be stock options like what frontier was always offering. Think that’s our best bet.
what do you think?
04-09-2025 | 06:48 AM
#68
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exactly and those don’t pay jack squat in a liquidation. Straight back to their owners which are not the owners of spirit
04-09-2025 | 07:29 AM
#69
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From: Engines Turn or People Swim
I'm sure the current shareholders would prefer cash (who wouldn't) but yeah stock seems more likely... stock in an F9+NK entity might seem like a safer investment (or more valuable to unload immediately) than just plain NK stock.
04-09-2025 | 12:06 PM
#70
At your mom's house
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From: cpt 737
TWA/AA was technically pre-recession, early 2021. Point being airline managers appear to prefer to see a positive rate on the economic VSI before they pull the M&A trigger.
I'm sure the current shareholders would prefer cash (who wouldn't) but yeah stock seems more likely... stock in an F9+NK entity might seem like a safer investment (or more valuable to unload immediately) than just plain NK stock.
I'm sure the current shareholders would prefer cash (who wouldn't) but yeah stock seems more likely... stock in an F9+NK entity might seem like a safer investment (or more valuable to unload immediately) than just plain NK stock.
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