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32andBelow
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Re: Unalaska/Dutch Harbor DUT/PADU now that 7H-Ravn/Penair is shut down

Fri Apr 10, 2020 4:35 pm

I heard they got the loan. This says they may have gotten the the 12 million dollar loan.

https://www.alaskapublic.org/2020/04/10 ... -for-good/
 
durangomac
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Re: Unalaska/Dutch Harbor DUT/PADU now that 7H-Ravn/Penair is shut down

Fri Apr 10, 2020 5:07 pm

Adding another $12 million loan on top of that — which the judge authorized at Tuesday’s hearing — “was extremely difficult and extremely contested” among the lenders, Neier added. The lenders were troubled by the fact that half of the money was going toward paying wages that had already been earned by Ravn employees’, rather than protecting the value of Ravn’s assets that could be sold to pay down the company’s $90 million debt, Neier said.


Interesting piece of information from the article, one of my worries about Ravn. Honestly doesn't sound good for Ravn if the lenders would rather liquidate than try to keep the company afloat.
 
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usxguy
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Re: Unalaska/Dutch Harbor DUT/PADU now that 7H-Ravn/Penair is shut down

Fri Apr 10, 2020 9:40 pm

I think the $12 million loan was to keep the company alive until it can be sold or parted out. I don't believe this amount was related to the CARES act for airlines.
xx
 
roadrunner165
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Re: Unalaska/Dutch Harbor DUT/PADU now that 7H-Ravn/Penair is shut down

Fri Apr 10, 2020 9:42 pm

Remember that Ravn is majority owned by two private equity firms from the East Coast. They monopolized a rural market that primary benefits from government subsidies. During good times they loaded the airline up with debt. Basically, they privatized profits, and now their plan is to socialize losses. They should be allowed to fail. Other airlines will step up to fill the gaps. My best to the employees, hopefully they will get on with a more reputable airline serving Alaska communities.
 
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c933103
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Re: Unalaska/Dutch Harbor DUT/PADU now that 7H-Ravn/Penair is shut down

Fri Apr 10, 2020 10:42 pm

aemoreira1981 wrote:
32andBelow wrote:
aemoreira1981 wrote:
Insofar as QX is concerned...I have to wonder if it would be wise to use any DH8Ds that they haven't scrapped and send them out to be converted to a combi conversion for milk runs around Alaska? These could then be transferred to a different operating company using the 7H AOC if 7H doesn't resume operations (the AOC being the most significant asset as that would permit the use of unprotected gates).

Unprotected gates? Any airline in Alaska can operate 50 seats or less without TSA. It’s a tes Stevens exemption.


Hence the idea for a DH8D combi---they would be limited to 50 seats as the rest of the frame would be dedicated for cargo and milk runs. I had thought it was connected to the AOC.

Bombardier have made something similar and sold them to Japan under the moniker of Q400CC a few years ago
It's pointless to attempt winning internet debate.
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32andBelow
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Re: Unalaska/Dutch Harbor DUT/PADU now that 7H-Ravn/Penair is shut down

Fri Apr 10, 2020 11:58 pm

usxguy wrote:
I think the $12 million loan was to keep the company alive until it can be sold or parted out. I don't believe this amount was related to the CARES act for airlines.

Doesn’t make any sense to take a loan to liquidate. Just liquidate under chapter 7. they should have no problem selling the caravans and Navajos. The dash 8s and aaab 2000s good luck.
 
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usxguy
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Re: Unalaska/Dutch Harbor DUT/PADU now that 7H-Ravn/Penair is shut down

Sat Apr 11, 2020 12:39 am

32andBelow wrote:
usxguy wrote:
I think the $12 million loan was to keep the company alive until it can be sold or parted out. I don't believe this amount was related to the CARES act for airlines.

Doesn’t make any sense to take a loan to liquidate. Just liquidate under chapter 7. they should have no problem selling the caravans and Navajos. The dash 8s and aaab 2000s good luck.


In order for the FAA certs and DOT authority to remain, they need to keep at least 1 route going 5x a week per cert - since Ravn has become a mish-mash of 5 airlines, I'm not sure how many certs they have... but that means keeping a skeleton crew on payroll. That's where there is value. FAA will typically only allow a 30 day lapse (in "normal" times).

So one would guess, someone came up with that $12 million number (I am assuming that is what is needed to get the essential vendors still on board).
xx
 
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Kaphias
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Re: Unalaska/Dutch Harbor DUT/PADU now that 7H-Ravn/Penair is shut down

Sat Apr 11, 2020 1:59 am

usxguy wrote:
32andBelow wrote:
usxguy wrote:
I think the $12 million loan was to keep the company alive until it can be sold or parted out. I don't believe this amount was related to the CARES act for airlines.

Doesn’t make any sense to take a loan to liquidate. Just liquidate under chapter 7. they should have no problem selling the caravans and Navajos. The dash 8s and aaab 2000s good luck.


In order for the FAA certs and DOT authority to remain, they need to keep at least 1 route going 5x a week per cert - since Ravn has become a mish-mash of 5 airlines, I'm not sure how many certs they have... but that means keeping a skeleton crew on payroll. That's where there is value. FAA will typically only allow a 30 day lapse (in "normal" times).

So one would guess, someone came up with that $12 million number (I am assuming that is what is needed to get the essential vendors still on board).

Per the article, half of that $12 million is going towards paying wages which have already been earned. The rest would be used to "prepare" for liquidation if government funding does not come through.
 
MO11
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Re: Unalaska/Dutch Harbor DUT/PADU now that 7H-Ravn/Penair is shut down

Sat Apr 11, 2020 3:27 am

32andBelow wrote:
iAmAlaska49 wrote:
32andBelow wrote:
I heard ravn got their bailout

By who???

The feds I believe


No. It's $12 million in DIP financing led by BNP Paribas.
 
32andBelow
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Re: Unalaska/Dutch Harbor DUT/PADU now that 7H-Ravn/Penair is shut down

Sat Apr 11, 2020 3:39 am

MO11 wrote:
32andBelow wrote:
iAmAlaska49 wrote:
By who???

The feds I believe


No. It's $12 million in DIP financing led by BNP Paribas.

Weird. It’s obvious the management isn’t sharing much with the employees

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