canadflyau
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- Joined
- May 2, 2002
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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.""
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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