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WSJ Reporting DL Could File 11 This Week  
User currently offlineLowecur From United States of America, joined Jan 2005, 585 posts, RR: 0
Posted (8 years 7 months 1 week 3 days 23 hours ago) and read 2114 times:

Well it looks like the DIP financing will go to GE for $1.7B. $1B will be used to payback old GE loan. All remaining assets to be hocked including CMR and Business Jet Unit.

http://biz.yahoo.com/rb/050912/airlines_delta_wsj.html?.v=1

5 replies: All unread, jump to last
 
User currently offlineAirbuff From Canada, joined Aug 2005, 140 posts, RR: 0
Reply 1, posted (8 years 7 months 1 week 3 days 23 hours ago) and read 2091 times:

I certainly hope they can pull through this. It would be a shame to see them go.


Where am I going, and why am I in this handbasket?
User currently offlineMilesrich From United States of America, joined Jul 2003, 1941 posts, RR: 6
Reply 2, posted (8 years 7 months 1 week 3 days 23 hours ago) and read 2087 times:

Let's hope so. If GE comes up with the package, DL will file Chapter 11 asap, and then they will either sink or swim, and let's hope it's the latter. They should have done this three years ago, instead of hocking all of their assets and burning cash like it was jet fuel.

User currently offlineLACA773 From United States of America, joined Nov 2004, 3945 posts, RR: 2
Reply 3, posted (8 years 7 months 1 week 3 days 23 hours ago) and read 2047 times:
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In the article it states "Delta will have to hock every unencumbered aircraft....gates at New York LaGuardia.......and even routes to London and Tokyo.....".

What aircraft would they give up as I thought they needed everything they had with the exception of what they are retiring?

Gates at LGA? Do they have extra there they're not using? I can't see them selling gates they're currently using as they seem to do well at LGA.

Selling routes to LGW & Tokyo? Isn't this pretty severe to have to give these up?? They make a lot of money on these routes.

Any input? Thankyou.

LACA773


User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6484 posts, RR: 24
Reply 4, posted (8 years 7 months 1 week 3 days 23 hours ago) and read 2026 times:

Quoting LACA773 (Reply 3):
Selling routes to LGW & Tokyo? Isn't this pretty severe to have to give these up?? They make a lot of money on these routes

DL is NOT selling anything. They are using these assets as collateral to get a loan. It's no different than using your car as collateral to get a loan....you still get to drive the car as long as you can make the payments. Of course, if you default on the payments, then they can repo your car.


User currently offlineLACA773 From United States of America, joined Nov 2004, 3945 posts, RR: 2
Reply 5, posted (8 years 7 months 1 week 3 days 22 hours ago) and read 1991 times:
Support Airliners.net - become a First Class Member!

Quoting FlyPNS1 (Reply 4):

Thanks man. I apreicate the information as I took it literally.

LACA773


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