|Quoting RCS763AV (Reply 6):|
AV made 130m in 2004....(though they were in Ch.11)
If oyu really look deep into that number, it's more amazing 2006 1Q results than the whole 2005. Here's why:
One of the good things about Bankrupcy laws in the U.S. (Ch. 11 in this case) is that after a corporation goes into it, suppliers must keep doing bussines with them, until a judge says otherwise. This is to protect employees and let both parts, workout and agreement. For all the negotiation period, AV
stopped payments to many of it's americans suppliers (IIRC, some leasing fees on it's planes too) while all the selling deal between Santodomingo and Mr E went through. (The judge let this deal go through after a plan was presented by Mr E, in which all debts were suppossed to be paid in a period of time and fresh money was going to be injected in the company). In plain language, they didn't pay a LOT of money they were suppossed to be expending on normal operating costs, and that went directly to their profit. Today, the whole thing is different, they're paying on time to their suppliers, including lease fees, and even have the cash flow to do a little investment much needed. This is why I think 2006 result exceed BY FAR
2004, which were published with great publicity by colombian media, but of course, no journalist took the time and the brains to go a step forward.
On the other hand, the CAXDAC issue with AV
is even more complicated than the Ch. 11 issue. That's were AV
real financial problems are. For respect for a.netters who might know way more than what i know on this topic, i prefer not to even go a line further.
If anyone has a different view on it, please share it with us.
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