DIP financing for DL

[lowecur]

UAIR chairman Bronner says they are unable to attract investors should UAIR go back into 11. He said he would not be an investor again, and he refuses to sell any assets (not according to the 10Q).

If this is the case for UAIR, why would anyone pony up the money for DL? It has been my contention that they will go to 11. What makes DL a more attractive investment than UAIR at this pt?

 

[MedFlyer]

UAIR chairman Bronner says they are unable to attract investors should UAIR go back into 11. He said he would not be an investor again, and he refuses to sell any assets (not according to the 10Q).

If this is the case for UAIR, why would anyone pony up the money for DL? It has been my contention that they will go to 11. What makes DL a more attractive investment than UAIR at this pt?

Very little except for maybe the ATL operation and the fact that DL has a large non-union contingent of employees.

If DL goes CH 11, they will have a very difficult time finding DIP financing. Look at UA (a carrier that does have some decent assets) and see how difficult a time they are having getting out of BK.

 

[Andy]

UAL has had no problem lining up DIP financing. Exit financing is another story.

If I were DAL, I'd look at selling off ASA & Comair before entering chap 11.

 

[General Lee]

So, I guess all of this equity talk is for nothing, right?

Market Report -- In Play (DAL)
August 18, 2004 09:45:00 AM ET


"Delta Air Lines may offer pilots equity stake to get cuts-- Washington Post (DAL) 3.64 +0.05: The Washington Post is reporting that DAL, in an effort to avoid bankruptcy, is considering offering pilots an equity stake in co in exchange for pay and benefits. Co is hoping to get concessions of about $1 bln a year in exchange for the equity offering plan. Details of the proposal are expected to be released later today at a meeting between the airline executives and union negotiators."



You guys, Lowecur included, really don't know exactly what will happen---so just hold on for the ride just like the rest of us. I guess it is "fun" to speculate though---especially if you are an analyst like Lowecur......


Bye Bye--General Lee

 

[lowecur]

Very little except for maybe the ATL operation and the fact that DL has a large non-union contingent of employees.

If DL goes CH 11, they will have a very difficult time finding DIP financing. Look at UA (a carrier that does have some decent assets) and see how difficult a time they are having getting out of BK. UAL actually does have Citigroup and a few others lined up, but the pension must be changed before that goes through.

.....

 

[Andy]

"UAL actually does have Citigroup and a few others lined up, but the pension must be changed before that goes through."

Show me that in print from a spokesperson from Citigroup, JPM, or anyone else in the financial consortium that are working on exit financing.
While it's been speculated, there is no smoking gun.

As for DAL, I agree with General Lee. Too early to tell. And as for DIP financing, there were enough takers for UAL; I see no reason why DAL would be different. UAIR is a horse of a different color than UAL and DAL.

 

[lowecur]

So, I guess all of this equity talk is for nothing, right?



You guys, Lowecur included, really don't know exactly what will happen---so just hold on for the ride just like the rest of us. I guess it is "fun" to speculate though---especially if you are an analyst like Lowecur......Well, just maybe I'm wrong....choke, choke.....although that would be hard to stomach. If it's a serious equity offer, then we should know something in a week or two. It suggests one of two things. It's possible DL sees the handwriting on the wall and would have a very difficult time securing DIP exit financing thus making it difficult to exit BK, or they are just offering a minimal equity package to show good faith in the negotiations prior to filing for BK. My guess is Greenjeans is not happy with the PBGC reply to UAL on waiving their pension payments, and realizes his best deal could be out of BK (for now). Bye Bye--General Lee

.....

 

[lowecur]

"UAL actually does have Citigroup and a few others lined up, but the pension must be changed before that goes through."

Show me that in print from a spokesperson from Citigroup, JPM, or anyone else in the financial consortium that are working on exit financing. No. While it's been speculated, there is no smoking gun. I'm a speculator, or didn't you know that.

As for DAL, I agree with General Lee. Too early to tell. And as for DIP financing, there were enough takers for UAL; show me that in print from a spokesperson; I see no reason why DAL would be different. UAIR is a horse of a different color than UAL and DAL. Care to splain yourself, Lucy? I find it hard to believe an airline with $20B in debt is in the same catagory as UAL. UAIR is at least trying to change at this point.

.....

 

[G4G5]

I read an article in the WSJ recently (to busy now to look it up) that stated that the various credit card companies that are tied to the various airlies FF programs are to stuck. If push came to shove the credit card company would find the financing because they don't want to lose the revenue gained by the FF program. This is why AA went to Citibank when they were exploring Bk financing.

Bank One (Now JP Morgan Chase) = UAL
Citibank = AA
chase = CAL
Amex - DAL

The problem is that AMEX by defination is not a credit card and their CEO Chenault, in on record as being opposed to getting heavily involved with a Delta bail out.

The other problem is Bank One sign on with UAL, prior to their merger with Chase. Chase has deep ties with CAL. Chase is not about to cover the loses of two airlines.