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Does The Speed Of BK Restructuring Really Matter?  
User currently offlineTl8490 From United States of America, joined Sep 2005, 161 posts, RR: 0
Posted (10 years 2 days 4 hours ago) and read 2568 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...

Does it matter either way thou????

3 replies: All unread, jump to last
User currently offlineFriendlySkies From United States of America, joined Aug 2004, 4131 posts, RR: 5
Reply 1, posted (10 years 2 days 4 hours ago) and read 2558 times:

No, it doesn't.


User currently offlineSllevin From United States of America, joined Jan 2002, 3376 posts, RR: 5
Reply 2, posted (10 years 1 day 23 hours ago) and read 2526 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.


User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5977 posts, RR: 7
Reply 3, posted (10 years 1 day 21 hours ago) and read 2515 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.

The best time to plant a tree is today. The second best time is tomorrow.
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