Delta liquidity hampered by $750m deposit

[asa rat]

So was the sale of ASA necessary to generate cash for this credit card processing deposit? Sounds like bankruptcy could still happen before Oct 17th.
And if so, we are fortunate to be sold.


http://us.ft.com/ftsuperpage/superpage.php?news_id=fto081620051524216489&referrer_id=yahoofinance

 

[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]

<<"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]

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]

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.