Remind me where the $$ goes

[CoATP]

Talking about NW quarterly profit.

"The bankrupt carrier posted a loss of $1.2 billion compared to a loss of $475 million a year ago. Excluding restructuring costs and other items, Northwest would have reported a profit of $252 million, vs. a loss of $234 million a year earlier."

A little math ... loss =$1.2 bil excluding ch 11 and "other costs" profit = 252 mil (.25 bil) so actual profit = $1.45 billion! that was spent.

Could one of you that is wiser and smarter than me [don't all raise your hands at the same time] explain just how $1,450,000,000 got spent on lawyers and "other" items beyond ordinary costs (salaries, fuel, equipment,etc.) in 3 months. $500,000,000 a month! 15,000,000 a day! Heck if a day was 30 hours long that would be a half million dollars an hour. I would really pissed if that was just one lawyer.

 

[YourPilotFriend]

They wrote off their creditor claims into long term debt. It's an on paper loss and may or may not represent real dollars. It's actually more of an investment, because that promise of $1.2 billion was to the employees to take a $1.4 billion dollar pay cut. If the employees are lucky, they make recieve 10% of that money, yet the company made billions over the duration of the contracts.

 

[Prop2Jet]

Sure: Porsche has a new 911 S, number of board members equals 12. 12 times the cost of 12 911 S Porsches' equals 1.2 million. Now a new house is required to house a new 911S total cost their is 10 million per home plus 1 little hot maid, or one lucky FA, to clean. Their is your answer!

 

[shroomwell]

Couldn't get it to post right, but the highlights are 1.3 billon Aircraft Restructing charge 1.0 billion "Employee Claims, net" is. Also it appears that the lawyers only got 40 million, although I suspect there is much more hidden somewhere else as another charge.

 

[SpoilerFault]

It's quite simple where the money goes....Steenland and his gang of corporate bandits! These clowns probably sit around sipping brandy trying to find new ways to screw the employees and say they're losing $$. Who knows, they probably have Frank Lorenzo on speed-dial for consulting purposes!

 

[YourPilotFriend]

It's quite simple where the money goes....Steenland and his gang of corporate bandits! These clowns probably sit around sipping brandy trying to find new ways to screw the employees and say they're losing $$. Who knows, they probably have Frank Lorenzo on speed-dial for consulting purposes!

Hey, Lorenzo actually does consulting services.

 

[n757st]

Its all paper... and apon exiting bankruptcy they will have to post a massive, yet also paper, profit... in the realm of many billions of dollars.