Piney:
Right track, wrong people.
If you listen very carefully to what Lakefield stated yesterday in his weekly message he alluded to attracting new capital. RSA does not want to go to C11 for a number of reasons but, IMO, the biggest reason is because they may very well lose control of U. Once inside C11 there will be other interested parties who will look to provide DIP financing. Sort of like the bidding war between RSA and Texas Pacific Group the first time.
Why would anyone WANT to provide U with DIP financing after we file? We made 34 million bucks in a quarter when nearly everyone else lost money. With fuel at ridiculous prices, with an operation that is average at best, with a CSM higher than most everyone else and with an incompetent management who has crapped on employees since Hector was a pup. In other words, there is a profit machine hiding under the wreckage of the mismanagement that has thrived here over the last 10 or 20 years.
RSA understands that. You may well be correct with what they HOPE to do but I see other entities (possibly Texas Pacific) fighting it out with RSA for control. Listen to Lakefield's message very carefully. Bronner stands a very real chance of losing control of this airline inside of C11. He may come out on the losing end of a DIP financing bidding war. There is tremendous potential at US Airways. With competent management, a solid revenue model and the correct operational and labor productivity. Bronner and Lakefield know it. So do others.
mr
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