Guest

Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 12:11 am

Hi everyone.

I was just checking some stocks and TWA has its stocks @ 2 2/16. Now that is really cheap for an airline. Are they going to go bankrupt and be filing for Chapter 11?

Thanks,
Alexander.
 
AA737-823
Posts: 4905
Joined: Wed Mar 01, 2000 11:10 am

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 12:21 am

no, that has not been predicted. In 2003 some outstanding rules made by a previous manager (who shall remain nameless, as I can't remember all of his name right now!) will be done away with, and it is predicted that they will merge with someone.
R
 
flybulldog
Posts: 351
Joined: Tue Aug 22, 2000 10:26 pm

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 12:34 am

Expect a merger announcement if it stays that way.
 
EyeSky
Posts: 317
Joined: Fri Aug 25, 2000 4:52 am

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 12:37 am

AA737-823,

Who do you figure they'll merge with? Have they been in talks with anyone, either publicly or on the sly? I sure would hate to see TW go the way of Pan Am.

Still, there is very little left of the old pioneer. Perhaps it would be best to take it out behind the barn ...
 
flybulldog
Posts: 351
Joined: Tue Aug 22, 2000 10:26 pm

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 12:44 am

I heard ATA was in merger talks, but it never materialized.
 
Guest

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 12:56 am

Having a low stock price should not be used as a strict indication that a company will go bankrupt. Market Cap, P/E Ratio, EBITDA, and other indicators are used in addition to stock price to determine the financial health of a company.

Also, having a low stock price does not also automatically make you a takeover target. There are reasons you have a low stock price and acquiring companies want their targets to be somewhat healthy rather than investing their own money to turn a company around. Besides, TWA would have been acquired long ago if low stock price was the key.

As an individual investor, and assuming you had the resources, would you gobble up as much TWA stock as you could because it's cheap and does not have drastic fluctuations in price, has a negative earnings per share, negative book value, and negative return on assets? I wouldn't.

TWA is turning around, but it has a long way to go to turn heads on Wall Street.

Carl Icahn is the previous majority stockholder for TWA.
 
Guest

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 12:57 am

By the way, it was AirTran that considered merging with TWA when merger mania was rampant at the beginning of the summer.
 
N312RC
Posts: 2584
Joined: Mon Aug 28, 2000 10:58 am

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 1:00 am

TWA has been around FOREVER! I doubt it will go to hell in a handbasket anytime soon. It made it through the recession in the early 90's and deregualtion, their in it for the long-haul.
N/A
 
EyeSky
Posts: 317
Joined: Fri Aug 25, 2000 4:52 am

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 1:20 am

N312RC,

Pan Am was around for a long time too before it faded away. So was Eastern, but I would classify their demise as more of an assisted suicide. TWA barely made it through the air travel recession in the early 90's and it could be argued that it did so only by filing for protection from creditors.

Continental found the right formula for making it in the post deregulation era and has executed a 180 from the direction they were heading. It remains to be seen whether or not TWA will be able to do the same and still maintain their corporate identity. Anybody remember Western, or Piedmont, or PSA??? All proud names once, now just a piece of history.
 
acvitale
Posts: 1911
Joined: Sat Aug 18, 2001 8:25 am

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 1:23 am

TWA is in the middle of a successful turnaround. They reduced long term debt from 1.6 billion to 600 million revitalised the fleet with new aircraft, Run one of the best operation performing airlines in the US domestic market and paid off the pension funds.

All this with Icahn's Karabu still around their necks.

Oh yes and TWA added 31 million to the bank account last quarter with an operational profit (net loss offset by NOLs for cash profit)
 
PB737
Posts: 24
Joined: Wed Aug 11, 1999 7:37 am

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 3:16 am

I read a previous post about a month ago that hinted that
Northwest airlines would have alot more planes flying into
St.Louis. I don't know if that means they are beefing up
their schedule to STL or if the poster knew a little bit
about a possible TWA/Northwest merger. Anyone hear
anything about this rumor??

Thanks,
PB737
 
propilotjw
Posts: 520
Joined: Mon Mar 27, 2000 1:02 pm

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 3:34 am

now that i have read all of the previous posts, I would like to tell you that TWA is not going to file for chapter 11, there are no merger talks going on at this moment, Northwest is not looking at buying TWA, TWA has been around for 75 years and will be around for at least 75 more, and Carl Icahn's karaboo operation will be over in 2003. At that point Carl Icahn can shove Karaboo right up his ass. He is a money hungry jerk and does not care for the companies he buys. He buys them to jack up the stock prices and then sell for all he can get.
 
EyeSky
Posts: 317
Joined: Fri Aug 25, 2000 4:52 am

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 5:24 am

PropilotJW,

I suppose if TWA survived Howard Hughes, they could survive Ichan as well. Should be interesting either way.

EyeSky
 
TWA717_200
Posts: 1410
Joined: Tue Nov 23, 1999 3:51 am

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 7:11 am

EyeSky, great point! I never thought of that. Hughes was crazy, Icahn's a jerk.

If I hear any more rumors of either AirTran OR Norwest merging with my beloved airline, I think I'm gonna puke.

They'll do fine on their own.

For those of you that haven't flown at least 2 flights on TWA, (not including TWE/TSA!), do so and you'll understand why I'm so confident in and enamored by this airline.
 
EyeSky
Posts: 317
Joined: Fri Aug 25, 2000 4:52 am

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 6:33 pm

TWA717_200,

I'd like to fly TWA more often, but their presence at SEA is pretty much limited to STL non-stops. Quite a far cry from the globe circling network they once boasted.

One of my fondest memories of TWA was getting a one hour ride on a 707 around BOS and southern New England in 1976. TWA had teamed up with a local charity to fight muscular distrophy called "The Jimmy Fund". For $25 per person you could get taken up on one of 3 707's that TWA had set aside one Saturday for what they called "The Jimmy Fund Airlift". I had such a blast that I got back in line and rode twice that day.

By the time 1990 rolled around I found myself packed like a sardine in the filthy coach section of a TWA L-1011 between LAX and JFK. We were 2 hours late to boot! What a difference a decade makes.
 
Guest

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 6:47 pm

The reason why I posted this is because I like TWA. Eventhough American comes first. I would hate to see TWA go away but thanks to some of the people that posted I now believe that indeed they will be around for a while. I also did some checking and it doesn't look like they will be going bankrupt. It took me a while to find the information.

I will be flying TWA next week on thursday. From LGA - PBI. It will be a MD-80.
 
flybulldog
Posts: 351
Joined: Tue Aug 22, 2000 10:26 pm

RE: Is TWA Going To File Chapter 11?

Wed Sep 06, 2000 6:49 pm

TWA will be bought-out long before they file Chp. 11. Since the merger sharks are starting to swim, I wouldn't be surprised if TWA is looking for a partner. I hear rumors that the latest offer was $5.00 a share, up from what Air Tran offered. I think the current climate of high interest rates and fuel costs is putting a lot of pressure on TWA's balance sheet. We'll see what happens.