Press release at http://biz.yahoo.com/prnews/020624/dcm045_1.html
Excerpts from the release:
The payment deferrals are focused principally on aircraft lessors and lenders, all of which have been notified, including aircraft that have already been grounded and selected older Boeing aircraft in service that have been targeted as part of the restructuring plan.
The Company said that the payment deferrals do not involve any public debt obligations or payments related to its Airbus aircraft fleet, all of which are current and which the Company presently intends to continue to pay in the ordinary course of business.
The Company said that it was otherwise paying its day-to-day obligations and did not anticipate any impact to its customers, employees, airports or other operations. The Company also said that the strategic lessor/lender and vendor payment deferral initiatives were not linked to the Company's current cash position.
The Company acknowledged the possibility that it may receive notices of default which could eventually lead to cross-defaults under agreements with other lessors, vendors and creditors. Such cross-defaults could lead to an acceleration of payment demands by the Company's creditors, which if not rescinded, could require the Company to implement its restructuring plan though a Chapter 11 bankruptcy reorganization.
Not good news from Crystal City. I can't see how anyone at US could feel good about this. First, ask for a loan, then ask to delay paying off earlier loans... sounds like they don't intend on making money for a very long time.
How many other people would be allowed to run up their credit cards to the limits, get a bank-guaranteed loan, and then stop paying some of their oldest bills? Precious few...
Anyone care to hum along with me as we watch more deck-chair arranging on the Titanic of the skies?