MIflyer12 wrote:tphuang wrote:Those unencumbered assets are just something accounting department marked up. When its time to actually sell those assets, who is going to be buying them when there is nobody flying? If half of the airlines are looking to dump unencumbered assets for cash relief, what are these assets going to be worse.
Delta snapped their fingers and raised $1 Billion last week against owned aircraft. There's an SEC filing. Keep up. Carriers may not get book value for all assets but they can still borrow.
It's really impossible to deny that AA could file for bankruptcy. It's hard to argue that AA (by virtue of more debt, consistently lower margins, lower value of unencumbered assets) isn't likely among the earlier into Ch 11 if multiple U.S. carriers file.
LOL... Now that it looks like all the US3 are going to need help, I note that the statement has changed to: "AA will be the first to file for bankruptcy". Looks like it makes some people feel better somehow. Good to know!