Tl8490 From United States of America, joined Sep 2005, 161 posts, RR: 0 Posted (8 years 3 months 1 week 4 days 23 hours ago) and read 1913 times:
The main reason I am throwing this out there is:
1) The United 4 year trip and the results ..
2) The NW track which is much faster
3) The DL track which seems to be even faster....
The more I look at this process United wasted a lot of time...NW just seemed to decide rather quickly to declare and did not seem to have a complete plan..while DL seems to have everything done before they declared...
Sllevin From United States of America, joined Jan 2002, 3376 posts, RR: 6
Reply 2, posted (8 years 3 months 1 week 4 days 18 hours ago) and read 1871 times:
Typically, the speed at which one emerges from bankruptcy is a direct reflection of original shareholder value.
That said, it's not clear that any of the airline bankruptcies will leave any of the initial shareholders any value. But many bankruptcies occur where that's not the case, and the original shareholders do end up with some diluted value.
MasseyBrown From United States of America, joined Dec 2002, 5101 posts, RR: 7
Reply 3, posted (8 years 3 months 1 week 4 days 16 hours ago) and read 1860 times:
Quoting Sllevin (Reply 2): That said, it's not clear that any of the airline bankruptcies will leave any of the initial shareholders any value.
In general, you're right; but there were two recent exceptions.
The first US bankruptcy preserved equity; but, of course, that was the problem with the first US bankruptcy: in order to save the equity they retained all the debt, which doomed the first reorganization.
The HA bankruptcy also left the stockholders intact; in fact they could have profited handsomely, depending on timing of buys and sales.. The HA bankruptcy, however, was a management miscalculation and never should have happened. The company was basically sound and earned money throughout the period of bankruptcy.