If I am reading this right...
On 12/31/04, unrestricted cash was $738mil
On 1/31/05, unrestricted cash was $543mil
That's an unrestricted cash loss of $195mil, or $6.3mil/day
Yikes.
The Annual Report goes on to say: "The Bankruptcy Court approved two subsequent agreements extending the Company’s ability to use the cash collateral, including an agreement approved on January 13, 2005 extending the Company’s use of cash collateral through June 30, 2005, subject to certain conditions and limitations (the Cash Collateral Agreement). Under the current agreement, the Company may continue to access such cash collateral to support daily operations so long as it maintains an agreed upon minimum amount of cash on hand each week. The amount declines from approximately $500 million at the end of January to $341 million on June 30, 2005, with weekly cash levels permitted as low as $325 million in March 2005."
So I guess this level of cash losses is within ATSB loan covenents, but it seems dangerously low to me... And apparently, as of 1/13/05, expected to get worse!
Yikes again!