BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
- Banned
- #106
Come on KC, you can't be that slow to think that UAL doesn't pay it's bills.
Being with a company (US) that's been through BK twice now, maybe I've got a little more experience with this "bill paying" than you.
If you're only talking about post-BK filing bills, you're correct - those bills get paid and often the vendor requires cash up front (though not in most cases).
However, those bills that were unpaid when the company files BK largely remain unpaid. Those vendors (they're called unsecured creditors - they're owed money but control no collateral) end up getting a few cents on the dollar when the company emerges from BK - haven't I seen where UA's unsecured creditors will get something like 6 cents on the dollar?
In the case of US, that amounts to 10's of millions of dollars in unpaid bills for BK2 alone. I can just imagine what the total will be in UA's case.
Jim