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Delta DIP Financing?  
User currently offlineAa777flyer From , joined Dec 1969, posts, RR:
Posted (8 years 11 months 3 weeks 6 days 17 hours ago) and read 1490 times:

Since we are getting close to a POSSIBLE Ch11 for Delta, any speculation or facts for a DIP financing? They have to have it for CH11, and me thinks they are very heavily leveraged and it could be difficult to line up...

2 replies: All unread, jump to last
 
User currently offlineLono From United States of America, joined Apr 2004, 1335 posts, RR: 1
Reply 1, posted (8 years 11 months 3 weeks 6 days 16 hours ago) and read 1457 times:

Quoting Aa777flyer (Thread starter):
Since we are getting close to a POSSIBLE Ch11 for Delta, any speculation or facts for a DIP financing? They have to have it for CH11, and me thinks they are very heavily leveraged and it could be difficult to line up...

Which is why they are very hesitant to enter B/R... They may not come out....
Or in Grinstein speak.... "the airline as you know it today will cease to exist"..... which is a word for word quote when he spoke to us Western employees back in the day.... he has used a variation of this just recently when talking about DL B/R..... it is a sad deal to say the least.....



Wally Bird Ruled the Skys!
User currently offlineStevenUhl777 From , joined Dec 1969, posts, RR:
Reply 2, posted (8 years 11 months 3 weeks 6 days 16 hours ago) and read 1456 times:

I think you're right...I don't know how much they have in unencumbered assets right now, but that will make a huge difference. Same holds true for NWA, and DH. NWA also has NRT slots, but not sure if their NRT slots are already collateralized (held by a creditor) or not.

UA had $3B as of 12/2002, and they had NRT and LHR slots, among other assets, they could leverage to secure their DIP package. Oil was a hell of a lot cheaper in 12/02 as well. Sure, UA is damn close to 3 years, but it all comes down to how well you restructure the business and that nothing is left uncovered. Never leave a penny on the table when you exit Ch. 11. Don't leave a day too soon, and don't leave a day too late.

Not a position I'd ever want to be in.


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