Usair Bk

[usbac111]

has any body heard anything

 

[atlantis]

good question. everybody has been talking about doom and gloom but no one has seen bankrupcy filed yet. maybe it isnt going to happen after all. or maybe the unions will agree at the last minute and everything will go on as before.
if they do file today what time does it have to be filed by.<?

 

[jimntx]

There is no set time. On a Sunday, it all depends on what time "the judge is willing to meet you at the court." Technically, they could file at 2300 if they can get a court to accept the filing at that hour. (The judge doesn't actually have to be there, but some poor clerk or other officer of the court must be there to receive the document.)

However, don't think that agreements with the unions will prevent bankruptcy. US Airways has about $200 or $250 million dollars between them and default on the ATSB-backed loans. The ATSB required that the company keep $725 million cash on hand. As of 30JUN, the company had $975 million cash on hand.

If the company makes the $110 million (I think that is the right amount) pension payment next Wednesday, that will instantly wipe out appox. half the "cushion." At the rate US Airways is burning cash (approx. $2 million/day last I saw), that would leave them with only about 50 days of operating cash. The only way to avoid the payment is to file for bankruptcy.

If a company has any hope of reorganizing in Ch. 11 and continuing as a going concern, that company can not wait until it is broke before seeking BK protection. If you have no operating cash, you can not put a/c in the air.

There is another possible scenario. The company could make the payment, not file for bankruptcy, and when they dropped below the ATSB cash minimum, dare the ATSB and the ATSB-backed creditors to call the loans. As Bush 41 might have said, "That wouldn't be prudent."

 

[Justme]

The only way to avoid the payment is to file for bankruptcy.

Jim, there's one more way and I think that before they lose $240M RSA will issue and buy additional stock to avoid Ch. 11. Look at Dr. B's remarks on gaining control of a $7.5B (now $5.5B) company for $240M. What's another $200M for a company that has the ability to arrive at super low cost payroll without any contract changes (MDA and Wholly Owneds).

jm

 

[robbedagain]

i had heard from one f/a for a piedmont commuter that she had heard that it wouldnt be til tomorrow at the earliest as the pilots and the inept mgt are talking possibly of a deal.

 

[jimntx]

Jim, there's one more way and I think that before they lose $240M RSA will issue and buy additional stock to avoid Ch. 11.

jm

[post="179004"][/post]​

See my post under the "What Does RSA Own" thread which you started. I don't think RSA is going to invest any more money in US Airways because $240 million is an insignificant amount to the RSA.

 

[javaboy]

about 4pm today (sunday ) the company filed chapter 11

 

[Columbia blue]

Here's the press release...


http://biz.yahoo.com/prnews/040912/nysu016_1.html




Mode note: Continue discussing this topic at the following thread.

Us Airways To Seek Court Supervision To Complete, They filed Chapter 11