lowecur
Posts: 512
Joined: Wed Jan 26, 2005 1:18 pm

WSJ Reporting DL Could File 11 This Week

Mon Sep 12, 2005 9:06 pm

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
 
Airbuff
Posts: 136
Joined: Wed Aug 10, 2005 2:51 am

RE: WSJ Reporting DL Could File 11 This Week

Mon Sep 12, 2005 9:23 pm

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?
 
milesrich
Posts: 1508
Joined: Sun Jul 06, 2003 2:46 am

RE: WSJ Reporting DL Could File 11 This Week

Mon Sep 12, 2005 9:24 pm

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.
 
laca773
Posts: 2034
Joined: Sat Nov 06, 2004 7:10 am

RE: WSJ Reporting DL Could File 11 This Week

Mon Sep 12, 2005 9:49 pm

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
 
FlyPNS1
Posts: 5272
Joined: Wed Dec 01, 1999 7:12 am

RE: WSJ Reporting DL Could File 11 This Week

Mon Sep 12, 2005 9:54 pm

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.
 
laca773
Posts: 2034
Joined: Sat Nov 06, 2004 7:10 am

RE: WSJ Reporting DL Could File 11 This Week

Mon Sep 12, 2005 10:18 pm

Quoting FlyPNS1 (Reply 4):

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

LACA773