LUVRSW
Topic Author
Posts: 481
Joined: Sat Aug 13, 2005 11:15 pm

NW Close @ 1.90

Thu Sep 15, 2005 5:03 am

NW closed @ 1.90, DL @ .73
 
keesje
Posts: 8856
Joined: Thu Apr 12, 2001 2:08 am

RE: NW Close @ 1.90

Thu Sep 15, 2005 5:13 am

So are they filing or not?
"Never mistake motion for action." Ernest Hemingway
 
LUVRSW
Topic Author
Posts: 481
Joined: Sat Aug 13, 2005 11:15 pm

RE: NW Close @ 1.90

Thu Sep 15, 2005 5:15 am

They will file for Chapter 69, mile high club.
 
wgw2707
Posts: 1110
Joined: Wed Aug 13, 2003 10:37 am

RE: NW Close @ 1.90

Thu Sep 15, 2005 5:16 am

I'm guessing Delta will file and Northwest will hold off a bit. I don't see the involuntary pension payment tomorrow posing a serious threat to their liquidity, and I think they'll want to take more time to line up DIP financing. Northwest never was in half of the mess Delta currently is in. That said, an NWA financing pre-October 17th is decidedly within the realm of possibility.
 
soylentgreen
Posts: 244
Joined: Thu Jul 07, 2005 1:33 am

RE: NW Close @ 1.90

Thu Sep 15, 2005 5:19 am

Quoting LUVRSW (Thread starter):
NW closed @ 1.90, DL @ .73

That's 1.90 and .73 too much.
 
AirRyan
Posts: 2398
Joined: Wed Mar 30, 2005 9:57 am

RE: NW Close @ 1.90

Thu Sep 15, 2005 5:23 am

All logics seems to say NW will file but gut says no. If there were to file a judge may order the AMFA mechs on strike back to work when it appears that NW has otherwise already appeared to have won that battle.

Quote:
Merrill said a Northwest Airlines (nasdaq: NWAC - news - people ) bankruptcy isn't as likely as the other two, but is nonetheless growing in probability and would support a call for the removal of 100 to 200 aircraft from the domestic market due to record high fuel prices.

"We now estimate 60% probability of [a] Northwest Chapter 11 filing prior to Oct. 17," Merrill said.

http://www.forbes.com/markets/2005/0...914markets15.html?partner=yahootix

Quote:
As for Northwest, the analysts continued, "a lot of elements for an out-of-court restructuring are in place: the pilots, the mechanics by default, and probably some key lessors, private debt holders, and vendors. What is missing are the flight attendants and pension reform."

http://www.marketwatch.com/news/yhoo...41%2D43D2%2D88DD%2D3E8609D1F6E3%7D
 
JBLUA320
Posts: 2997
Joined: Mon May 27, 2002 8:51 am

RE: NW Close @ 1.90

Thu Sep 15, 2005 5:49 am

Interestingly enough, NWAC is being rated as a buy...

JBLU
 
AirRyan
Posts: 2398
Joined: Wed Mar 30, 2005 9:57 am

RE: NW Close @ 1.90

Thu Sep 15, 2005 6:03 am

Quote:
Chapter 11 still avoidable

Susan Donofrio, analyst at Fulcrum Global Partners, backed her buy rating on Northwest and said bankruptcy can still be avoided, although time is running out.

"Events that need to move quickly for Northwest are more labor concessions, either stabilized or lower fuel prices, and confidence that pension reform will go through," she said.

"All three can still happen, although it may be management's level of confidence and very quick wage concessions that are really going to matter in the very near term," she added.


Morgan Stanley's Douglas Runte took a similar stance, maintaining his overweight rating on Northwest's stock.

"We do not believe that the company will file for bankruptcy on Wednesday and that it can and will restructure out of court," he said.

Northwest's stock, after a precipitous 53% plunge to record lows on Tuesday, rebounded, adding 30 cents, or 19%, to finish at $1.87 on heavy volume of nearly 68 million shares.

http://www.marketwatch.com/news/yhoo...83%2D450A%2D9E1B%2DAD31FEC015B4%7D