Aercap said in its recent financial report it has a backlog for 335 planes. The idea that "not all will find a home" is ridiculous. Aercap will have those planes placed immediately. The idea they will get "pennies on the dollar" is ridiculous. Just because some US based ULCCs don't want the planes, there are other airlines in the world that need them and will take them as soon as they are available. Been to Asia recently? GDP growth is 4-5% throughout much of Asia. Southern and Eastern Asia is literally boomtown for airlines right now. That's where those planes will end up.

 

I still haven’t seen a legitimate reply…if we are heading for liquidation, why are the bondholders continuing to burn $3M+ per day? Many of you seem to think they are just running a charity until they can no longer make payroll.

 

Hey man don’t bring that sort of logic in here. The OA ghouls that frequent this forum are all juiced up at the thought of NK liquidating. Don’t ruin their fun.

 

They're burning the "$3M a day furniture" because they are desperately looking for a financial suitor while the BK court stay is in effect. This is very typical in the initial stages of Airline Chapter 11s as they look for anyone willing to bail them out. The October 27th court date, when the current "stay" expires, will most likely be the definitive timeline for Spirit to find some miracle financing or face liquidation, as the court will, in all likelihood remove the stay for AerCap and others to take their assets and run.

Spirit is projected to burn through $150M in the 30 days post BK, so when the bondholders have exhausted all hope of a savior they will pull the plug. If not I would bet that the court will do so with their removal of the temporary stay for the lessors and and secured creditors.

 

The bondholders are not decision makers at the company. They don't decide these things. Management runs the company. Also the bondholders just got burned because they converted a bunch of their previous debt to equity during BK1 and that equity is already wiped out with this BK. No idea how much of their shares they sold, but likely not much.

I'm guessing other entities can see what Spirit management just did to a group that came in to help out and don't want the same thing to happen to themselves.

 

Who do you think installed the current management regime and BOD?

 

That doesn't matter. The CEO and Company officers (not the bondholders) have a fiduciary duty to do everything in their power to keep the Company viable with the resources they have regardless of who appointed them. If the bondholders were also providing DIP monies then that would be a different story, but they're not.

 

Steve Jobs picked his own successor CEO in the early 1980s, John Scully. How well did that turn out for him?

 

This was just filed in BK court. The stuff being filed is flat out weird. Also the list of claimants is growing rapidly.

I, Ameer Flippin, CEO of Harlem Park Partners, Inc. (the "Movant"), a pro se litigant and
interested party in the above-captioned cases, by and through this Objection, ex-parte, respectfully
objects to the Motion of the Debtors for Entry of an Order (I) For Authority to (A) Enter Into
Agreements Under Section 1110(a) of the Bankruptcy Code, (B) Enter Into Stipulations to Extend the
Time to Comply With Section 1110 of the Bankruptcy Code, and (C) File Redacted Versions of Such
Agreements and Stipulations and (II) Approving Related Procedures (the "Motion"). The Movant further
requests that the Court, in any Order authorizing the Motion, mandate that a minimum of ten (10)
aircraft be set aside and designated for a potential breakup and launch of a debt-free new luxury
airline in the event and in the alternative to a possible conversion to a Chapter 7 Bankruptcy liquidation
where legacy shareholders can possibly recoup losses after two failed Chapter 11 reorganizations. In
support of an alternative strategic breakup, the 10 aircraft vessels should be placed in a separate newly
organized “Asset Trust” in support of salvaging a shareholder equity strategy. A Motion to allow aircraft
vessels to be sold securing debt implies a possible forthcoming Chapter 7 Bankruptcy liquidation
proceeding.

 

1. How do you find this?
2. What's weird about it? Explain for those of us who don't know squat.
3. Why are you on here bothering these guys? Jesus even I'm tired of it, and I don't work at Spirit. I think they know they're most likely srewed. No offense to the Spirit guys.