Deadlines....
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NeedForSpeedNFS
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Thats contradictory. Is it, or is not oa BK POSSIBLE???? Rest assured, the company WILL file BK!!700UW said:
Let me type this S L O W L Y
The company by the provisions of the ATSB loan are prevented from filing a voluntary filing.
Three or more creditors can file a involuntary chapter 11 forcing the company into bankruptcy and the judge will have to appoint a trustee to run the company and the executives lose control.
The company by the provisions of the ATSB loan are prevented from filing a voluntary filing.
Three or more creditors can file a involuntary chapter 11 forcing the company into bankruptcy and the judge will have to appoint a trustee to run the company and the executives lose control.
NeedForSpeedNFS
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OK, F A I R E N O U G H. What I am saying then, Is that is what WILL happen. The company WILL GO INTO BK!!! Tha sooner, the better :blink: GOOD DAY!!700UW said:
700UW said:
OR...
ATSB calls the loan on September 30th due to breach of covenants... US Airways repays the loan, and thus are no longer subject to its conditions... However, that leaves the company with almost $0 in the bank...
If you go with the End of June numbers, $975mil unrestricted cash, that means after paying off the $726mil ATSB-backed loan, UAIR has $249mil... Thats assuming UAIR does not burn through cash... But, the airline analyst community believes the company is burning cash (Jamie Baker said BK by the end of the year, remember?). Also, the unrestricted cash covenant is breached at $700mil unrestricted cash, and the AmEx financing is breached at $850mil. So if U does declare BK, its safe to assume its cash balance will be between $650mil and $850mil, meaning after paying off the ATSB, UAIR's cash balance will be something between $0 and $125mil
So now, UAIR can declare BK, with something less than $250mil unrestricted cash (probably less than $124mil) in the bank, and no ATSB to worry about... Keep in mind, the company went BK the first time with $500-$600mil unrestricted cash... Generally, you try to go BK with as much cash as possible.
OR
If UAIR declares voluntary BK with the ATSB-backed loans in place, they will breach the loan covenants... Fine, I don't dispute that. However, they are going to breach them anyway, and as far as I know, there are not "degrees of breach". Either you are in good standing or you are not. So I am not sure how much weight that covenant holds anyways, given the likelihood of breaching the unrestricted cash covenants and the EBITDAR-to-debt ratio covenants (per sfb's calculations on other threads).
usfliboi
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US can file BK! Im not sure where that rumor started. Facts are simple, that Bronner and Lakefield have stated it was an option as well in 10K filing.... Im sure there is some talks or agreements in place. To believe this isnt coming is too believe we havent been there.
You are wrong, go read the ATSB loan covenants, even Bronner spoke about the loss of control of US if BK is filed.
If you say US can file a voluntary petition please show us the documentation of facts to support your position.
If you say US can file a voluntary petition please show us the documentation of facts to support your position.
usfliboi
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700, Its common sense my friend.... Read ! The company can vol file BK , howevr it looses the entire loan amount and wont be able to operate with current certificates untill its paid. The documentation for the facts are in your hands. READ IT! The aggreement only relates to the money that was underwritten by the feds. Read the 10 K report, yet another factual piece of material for you. I also think your splitting hairs as usual. The company will vol in to bk in many different ways. Im not a lawyer and i know your not, but obviously we ve been here before. Even if we assume factually your 100% correct, your again splitting hairs by assumming the company hasnt already made a deal or will make a deal with the feds, however read the 10 k report ( the wording)and 8k amendamants 105.35 line 4! What does refile under protection mean to you. ? 10 k reports dont lie unless the writer wants to go to jail. BTW was in your area the other day, you didnt ask to see my badge! 🙂 SHAME ! 🙂
usfliboi
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aeroman , I know been there done that. But hey what do I know my creditablity is shot. Wait, actually no one on here has any.... Oh well continue with my opinions, I know some dont like them, but you do and say , what you believe. Its his right, you gotta respect it, even sometimes when they dont.
Read the ATSB loan documents that were amended the loan is still $726 million.
The 10K was out before the amended loan documents, that facts are out there, seek and ye shall find.
And you only have yourself to blame about your credibility as you were exposed in a web of deceit as you were saying you were something you were not.
Walk through the CLT hangar and distribution center lately without a SIDA badge?
The 10K was out before the amended loan documents, that facts are out there, seek and ye shall find.
And you only have yourself to blame about your credibility as you were exposed in a web of deceit as you were saying you were something you were not.
Walk through the CLT hangar and distribution center lately without a SIDA badge?
I'm reading the wording the same as you Fliboi and you're spot on. The painting is beginning to take shape and it appears the IAM may have themselves into a corner that they have no way out of. Few more weeks will tell and the ruling from the arbitrator is right around the corner. Either way I think 320 has got this one down and it might just happen as he's said all along. Like I said, time will tell.
USA320Pilot
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Bruce Lakefield told the ALPA MEC the company can file for bankruptcy. Furthermore, ALPA's financial and legal advisors told the MEC the same thing this week.
If the filing occurs, it will likely be on September 12.
Every major union except the IAM is negotiating contract changes with the company that include a S.1113E letter except the IAM.
In my opinion, there are a couple of scenarios that could occur, but basically with the IAM's decision to not participate in the new business plan the IAM will become irrelevant and basically toast.
Respectfully,
USA320Pilot
If the filing occurs, it will likely be on September 12.
Every major union except the IAM is negotiating contract changes with the company that include a S.1113E letter except the IAM.
In my opinion, there are a couple of scenarios that could occur, but basically with the IAM's decision to not participate in the new business plan the IAM will become irrelevant and basically toast.
Respectfully,
USA320Pilot
Assuming there is such a covenant, the ATSB could waive it if it believed that doing so was to its advantage. It might well view Ch 11 as a good idea if it prevents the company from having to make pension contributions. Money contributed to pension plans is money not available to the ATSB.
The ATSB is not going to do anything that would be viewed as contributing to liquidating the company. Without putting more money in, the ATSB will do whatever they think will best help the company to survive. If and when US Airways finally liquidates, the ATSB does not want to be seen as the party responsible.
The ATSB is not going to do anything that would be viewed as contributing to liquidating the company. Without putting more money in, the ATSB will do whatever they think will best help the company to survive. If and when US Airways finally liquidates, the ATSB does not want to be seen as the party responsible.
700UW said:
