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United Says Its Close To Exiting CH 11  
User currently offlineSwank300 From United States of America, joined Jan 2005, 49 posts, RR: 0
Posted (9 years 3 weeks 1 day 15 hours ago) and read 3067 times:

Here's to a profitable and successful exit from bankruptcy for United !!!

http://money.cnn.com/2005/08/26/news...nited_bankruptcy/index.htm?cnn=yes

10 replies: All unread, jump to last
 
User currently offlineAA7573E From United States of America, joined Nov 2003, 475 posts, RR: 2
Reply 1, posted (9 years 3 weeks 1 day 15 hours ago) and read 3054 times:

All debt exit financing. That's brilliant. Why don't they look for some equity instead of hobbling themselves with future huge balloon payments? Oh yeah, that's right, because nobody in their right mind would float the equity needed to right that ship.

Getting out of BK is great, and it seems inevitable that over the course of 3 years UA should find a way. But getting out on pure debt BK exit financing is foolhardy. It only delays the inevitable.

Way to go UA. Another foot in the long term grave. And just wait to see which board positions the exit lenders take, as they always do in these deals. That is all UA needs is bankers with no industry experience nabbing board seats. Great. Net net, huge debt covenants give you short term liquidity, but the long term implications, combined with giving up additional board control of your organization is the beginning of a whole new batch of issues for UA.



See you up front!
User currently offlineBrokenrecord From United States of America, joined Jul 2005, 772 posts, RR: 0
Reply 2, posted (9 years 3 weeks 1 day 15 hours ago) and read 3032 times:

AA, you've got my vote here.

User currently offlineUAcosCS From , joined Dec 1969, posts, RR:
Reply 3, posted (9 years 3 weeks 1 day 14 hours ago) and read 2931 times:

Quoting Brokenrecord (Reply 2):
AA, you've got my vote here.

Lets hear those say kudos for NWA and DAL when they are looking for exit financing. You will take money from whoever to survive.


User currently offlineDALMD88 From United States of America, joined Jul 2000, 2554 posts, RR: 14
Reply 4, posted (9 years 3 weeks 1 day 14 hours ago) and read 2926 times:

How close can they be? They just begged yet another extention to come up with a plan. What is that, the tenth extention?

User currently offlineStevenUhl777 From , joined Dec 1969, posts, RR:
Reply 5, posted (9 years 3 weeks 1 day 14 hours ago) and read 2915 times:

Quoting AA7573E (Reply 1):
bankers with no industry experience nabbing board seats.

I'll agree that you're raising a legitimate concern...although the current board doesn't seem to have a lot of airline experience either, as that's partially why they're in the situation they're in.

As far as the banks go, it's these same banks providing the exit financing who also provided DIP financing to UAL. So, they are well aware of the industry economics, as well as UA's, so I would argue that maybe the banks have some experience with what's going on.

We'll see...time will tell. Whether UA sets it's foot in a grave or not will depend on how well this restructuring effort truly went.


User currently offlineUAcosCS From , joined Dec 1969, posts, RR:
Reply 6, posted (9 years 3 weeks 1 day 14 hours ago) and read 2915 times:

Quoting DALMD88 (Reply 4):
How close can they be? They just begged yet another extention to come up with a plan. What is that, the tenth extention?

No the 14th

I would milk it for all its worth.

October 16th NWA and DAL will join them. Smile


User currently offlineHunUtazo From United States of America, joined Jul 2005, 235 posts, RR: 0
Reply 7, posted (9 years 3 weeks 1 day 13 hours ago) and read 2863 times:

Quoting StevenUhl777 (Reply 5):
As far as the banks go, it's these same banks providing the exit financing who also provided DIP financing to UAL. So, they are well aware of the industry economics, as well as UA's, so I would argue that maybe the banks have some experience with what's going on.

They're the very same banks that own the majority of ALL the legacy airlines...


Hmmmmmm, that's interesting

Wait...Watch.....Learn.....

 duck 



dude
User currently offlineFriendlySkies From United States of America, joined Aug 2004, 4106 posts, RR: 5
Reply 8, posted (9 years 3 weeks 1 day 13 hours ago) and read 2844 times:

Quoting DALMD88 (Reply 4):
How close can they be? They just begged yet another extention to come up with a plan. What is that, the tenth extention?

Sorry to burst your bubble, but UA's CREDITORS were the ones who begged for an extention this time. UA was set to submit a plan in August.


User currently offlineSwank300 From United States of America, joined Jan 2005, 49 posts, RR: 0
Reply 9, posted (9 years 3 weeks 1 day 9 hours ago) and read 2699 times:

What I don't understand is why would any airline in Ch 11 want to race to get out of bankruptcy right now. I understand that they are "milking it" which isn't fair to the other airlines I suppose, but with low-cost competition and the inability to raise fares even by $ 5-10 and the seemingly never-ending rising cost in oil and gasoline prices, the airlines keep getting hit over the head by obstacle after obstacle. I keep hearing from airline analysts that it isn't the oil prices that are the problem. It is the fact that there is so much competition that they have no pricing power. People need to fly, and would most probably pay an extra $10, $20 or possibility even $50 per ticket to fly if airlines imposed it on them.
Two of UA's major competitors, Delta and Northwest are only now saying that they may very well file for bankruptcy while their stock prices flounder around $2. They aren't exactly in a prime position right now. At least UA has some flexibility when it comes to what they owe and when they must pay. Am I totally off base here???


User currently offlineUAL777 From United States of America, joined Aug 2003, 1556 posts, RR: 5
Reply 10, posted (9 years 3 weeks 1 day 4 hours ago) and read 2577 times:

No swank you are not, but dont worry as this thread grows, it will be infused with nonsense by the UA haters of Airliners.net. They will make statements that make no sense and will make you want to pluck your eyeballs from their sockets because you will not be able to believe what you are reading. Go to CVS right now and buy the biggest bottle of aspirin you can find.


It is always darkest before the sun comes up.
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