Delta liquidity hampered by $750m deposit

H

Halo_RJdriver

The BK rules change Oct 1st. I don't know all the details of the changes but from what I gather it would benefit Delta to file before Oct 1st to enable the old rules to apply. Otherwise Chapter 7 will come soon after Chapter 11.

UAL is benefiting from the old rules right now!
 

wms

billSquared
Joined
Sep 4, 2003
Posts
2,052
Total Time
10500
<<"Delta is viewed as the weakest of the six US legacy carriers, which have faced intensifying competition from low-cost rivals">>

Way to turn the company around!
 

asa rat

Loves people...
Joined
Jan 24, 2003
Posts
150
Total Time
6000
Halo_RJdriver said:
The BK rules change Oct 1st. I don't know all the details of the changes but from what I gather it would benefit Delta to file before Oct 1st to enable the old rules to apply. Otherwise Chapter 7 will come soon after Chapter 11.

UAL is benefiting from the old rules right now!
Agreed, they would benefit by filing under current rules, but it looks like the new law starts Oct 17th

http://yahoo.smartmoney.com/onedaywonder/index.cfm?story=20050812&afl=yahoo


"Among the many factors dimming the airline's hopes for recovery are an oil market that adds $130 million to Delta's fuel costs for every 10-cent-a-barrel price increase; the continuing erosion of its $2 billion and dropping cash reserves; and the looming implementation of more stringent bankruptcy laws on Oct. 17."
 

FreedomAList

Well-known member
Joined
May 14, 2005
Posts
101
Total Time
8000+
Halo_RJdriver said:
The BK rules change Oct 1st. I don't know all the details of the changes but from what I gather it would benefit Delta to file before Oct 1st to enable the old rules to apply. Otherwise Chapter 7 will come soon after Chapter 11.

UAL is benefiting from the old rules right now!
Old rules = stay in BK as long as you can keep getting a judge to give you extensions (like TWA for, like, 7 years?)

New rules = 2 years, max. Or 1 1/2. Fixed amount of time, anyway.
 
Top