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Is the sun setting at GLA?

canadflyau

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http://www.greatlakesav.com//PDF/61550A.PDF

It has always been doom and gloom at GLA but this 10Q actually talked about discontinuing operations. The previous 10Q talked all about repossesions, and now this. As a former Laker I hated reading this stuff. I hope for all my buds this is posturing by Lakes to renegotiate the debt payments. (but this is a SEC filing)

This was a the disclaimer before the CONDENSED NOTES TO FINANCIAL STATEMENTS.
"The Company’s financial statements included in this Quarterly Report on Form 10-Q have been prepared under the assumption that the Company will continue as a going concern. The financial statements do not include any adjustments that might result if theCompany were forced to discontinue operations."

Here are other excerpts:
"As of June 30, 2005, the Company was in arrears with respect to almost all of theCompany’s aircraft debt and lease obligations. The Company does not believe that it will be able to generate sufficient cash flows to satisfy the outstanding arrearages or regain compliance with the Company’s aircraft debt and lease agreements during the remainder of the Company’s fiscal year 2005. In the event that the Company is unable to (i) satisfy the outstanding arrearages, negotiate terms for restructuring the arrearages, or obtain alternative debt and lease financing, and (ii) make payments on all debt and lease obligations in a timely manner, the Company is at risk that one or more of the Company’s debt obligations will be accelerated, thereby forcing the Company to either seek legal protection from its creditors or discontinue operations."

"4) the acceleration of one or more of the Company’s debt obligations that would force the Company to seek legal protection or discontinue operations;"

"On April 25, 2005, Raytheon notified the Company that due to the Company’s current defaults, it intended to reduce its exposure by requiring the Company to return five Beechcraft 1900D aircraft to Raytheon by June 30, 2005. The Company has agreed to a return schedule for five aircraft. The Company returned one aircraft in June 2005, returned one aircraft in July 2005, and will return the remaining three aircraft during the third quarter of 2005."

"As long as the Company remains in default under its basic debt agreement, Raytheon could, among other things, declare all unpaid principal and interest immediately due and payable and take possession of all the Beechcraft 1900D aircraft, one Embraer EMB-120ER aircraft, and other assets of the Company."

"Total operating expenses were $35.3 million, or 26.0 cents per ASM,"

"At June 30, 2005, the Company was in arrears on its aircraft rental obligations under the two Boeing aircraft leases in the aggregate amount of $6.7 million."

"The Company has an Amended Note payable to CIT Group for the financing of three of the Company’s Embraer Brasilia aircraft. During the first six months of 2005, the Company made payments of principal and interest onthe Amended Note in the amount of $0.2 million. As of June 30, 2005, the Company was in arrears on payments of principal dueunder the terms of the Amended Note in the amount of $0.9 million.""
















 
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808pilot

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i thought the sun had set awhile ago....you know, no one knows whats goin' on over there.....we're all a bunch of mushrooms.......i posted on another thread that there was rumor that some skywest people were up in cys checking out the ops building and hangers.....could be interesting.....i have to say that it would be a bummer to lose the pilot group....great bunch of pilots.....if you hear anything else, post it.....seems everyone outside of lakes knows more than us.....
 

AdSo81

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I just figured that its normal for the company to be in "a dire financial situation" Hasnt it been that way since the 70's anyway?
 

tattoo13

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I go to bed everynight on my overnights hoping that when I show in the morning the doors will be locked...just get it done with please for the love of god
 

NorskAir

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I don't think the sun ever shone on Great Lakes, but we did have a bunch of fun.
 

flying4food

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According to a friend there, Cheyenne told them the new marketing director has said they can do the same amount of flying with less airplanes, meaning less overhead!?!? What??? Rumor had it hey were repoed! What's the word with the strike talks? Has that cheap b@stard offered another .30 cent an hour pay raise? Sounds as though the pilot group may be up to something!!
 

Capt.LongThrust

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AdSo81 said:
I just figured that its normal for the company to be in "a dire financial situation" Hasnt it been that way since the 70's anyway?
Heard the same BS since at least the late 90's. Cockaroachs I say, they will be around for ever. If you believe every rumor you hear at GLA then you will not sleep well at all. My guess is that they will just burn down another hangar, maybe a few 1900's and use the insurance money to pay a few debts and continue operating. I have seen it before. Good luck lakers and remember pole to the marker unless you are a pu$$y!!!!!!!!! SEEEEEEYAAAAAAA
 

canadflyau

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they can do the same amount of flying with less airplanes, meaning less overhead!?!? What??? Rumor had it hey were repoed!
If it were only a rumor, but it is not. They also had to give Raytheon the spare engines (see last 10Q)

On April 25, 2005, Raytheon notified the Company that due to the Company’s current defaults, it intended to reduce its exposure by requiring the Company to return five Beechcraft 1900D aircraft to Raytheon by June 30, 2005. The Company has agreed to a return schedule for five aircraft. The Company returned one aircraft in June 2005, returned one aircraft in July 2005, and will return the remaining three aircraft during the third quarter of 2005
Your right, the sun was never shining, but they were good times. Personally, from the way this 10 Q reads, I don't think Lakes mangement feels that they can keep operating without one of the 3 debtors demanding immediate payment. I get that opinion from the language of this most recent 10Q filing.

Will Raytheon decide its time to hedge their losses and just get back their assets, or do they have faith that another Lakes debt restructuring will work for their bottom line???

Sad-
 

canadflyau

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A rumor is one thing, but when this is written in the 10Q
the acceleration of one or more of the Company’s debt obligations that would force the Company to seek legal protection or discontinue operations
five different times. And they put a disclaimer before their financial charts that basically says, this is only valid if we are still in business."

Puts a lump in my throat-
 

flythere

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flying4food

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i posted on another thread that there was rumor that some skywest people were up in cys checking out the ops building and hangers.....could be interesting.....
Why would SW want to inherit that place and all its debt and problems? Other than using that hangar in cys as an emb maint base, I can't see any reason SW would even hint at being interested. Not only that, but SW is phasing out their emb's I thnk they sent one or two to Lakes a while back, why would they want those piece's of crap back?? I think that statement is wishful thinking!!!
 

mamba20

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Your not cool if your company isnt in "dire financial status"
 

RichardRambone

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Dang and I just sent a resume to them. I knew it was a shatty move but damn, they sound like they are in huge trouble.
 

Cardinal

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flythere said:
Take a look at this link, was this airplane once a GLA airplane, maybe 2 or 3 months ago?? There appears to be a couple more as well!!!
,,,,
Yep, 94 and 118 were both Lakes airplanes.

This new "less is more" fleet planning concept is thus far quite the rodeo. MCK and GRI were both bid as nonstop EAS service. In July MCK was cancelled and instead flagstopped the GRI flight 31 times. In August so far they've had to flagstop it 16 times. And they're money hungry to the point that even though they promised the GRI passengers nonstop service on the ticket, dispatch will make you stop in MCK even if you don't have any passengers. (This is understood when it's scheduled, but when you're delaying pax that paid to be at their destination at such 'n such time?)

Better yet a Brasilia shat an engine, and it can't be replaced for a month. A month? I'm thinking that if Skywest had a birdstrike today, they'd have a new engine hung within 24 hours. Anyway, the Beech and it's crews has thus inherited one entire E120's month of flying. Yippee.
 

flythere

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"At June 30, 2005, the Company was in arrears on its aircraft rental obligations under the two Boeing aircraft leases in the aggregate amount of $6.7 million."

"The Company has an Amended Note payable to CIT Group for the financing of three of the Company’s Embraer Brasilia aircraft. During the first six months of 2005, the Company made payments of principal and interest onthe Amended Note in the amount of $0.2 million. As of June 30, 2005, the Company was in arrears on payments of principal dueunder the terms of the Amended Note in the amount of $0.9 million.""


If I read that financial posting right, it sounds as though Boeing Credit is about to repo those two emb-120' that they owe more than 6 mil in in payments on!?! Heck, you could buy two used emb-120's outright for that amount of cash!!!
 

BarbrPole2theOM

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As far as the 5 1900's that are being returned, Rayethon found a buyer in Africa (I think) that wanted to buy them and was able to make a deal with us to get rid of them with no penalty. I think they droped all the debt (including past debt) that we owed on them except maybe the intrest. Lakes is trying to get more efficient and streamlined. Unfortunatly with the EMB braking down, and not having any extra, all that flying has gone to the Beech. Also with the incident in GJT and a Frontier baggage cart running into one of our parked aircraft, operations have been pretty rough recently.
 

canadflyau

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Also with the incident in GJT
What happened in GJT?

Was it a bird strike or an engine failure in the EMB? (or a bird strike that caused an engine failure)
 
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