Spirit starts driving the final nails...

[troll565]

Unfortunately, our investors can take their money and run. Our investors don't have any shareholders to deal with during the liquidation.

Super rich people give their money to Indigo who in turn invest it in other companies. Don't you think the super rich people would be super pissed if their money disappeared in a liquidation or bankruptcy? Wouldn't that be a black mark on them for the future. If you're super rich, you may not give them any more money if they have a habit of poorly investing.

Wouldn't they rather stick it out or try and sell us to Jet Blue?

Barger was seen in Miramar Friday.

 

[castle bravo]

"Super rich people give their money to Indigo who in turn invest it in other companies. Don't you think the super rich people would be super pissed if their money disappeared in a liquidation or bankruptcy"?


Well this is the whole point. How can NK reasonably be expected to liquidate with a substantial private equity investment currently in place? Beetle seems to think Indigo/Oaktree can cut and run at any time, but one would think that there has to be another party at hand willing to assume their stake in the company unless Indigo/Oaktree is willing to accept a complete write down. Do you believe they are? Hence my inquiry about how much of Franke's own money is in-if any.

 

[castle bravo]

Barger was seen in Miramar Friday.

And where is B6 going to go for the $$$- back to Lufthansa for more ??? They currently have an entire market capitalization of $700M and their shares are trading at around $3.

 

[jmreii]

if you are a super rich investor, you have to be concern with the tax man. what better way to show a loss by investing in a struggling airline or any other enterprise. if it was me, I would want to pay little taxes as possible.

 

[Beetle007]

Spirit Airlines had $79,090,000 of cash and short term investments at the end of last quarter. If Spirit shuts down, the investors get to divide this money among themselves and any money raised from selling our assets (minus any outstanding debt owed to other companies). Keep in mind that Skybus had $79,546,000 during the third quarter of 2007.

Our board of directors will ask themselves one question. Will they make more money via liquidation or via continued operation? It is management’s job to convince them of the latter. This is the reason we are seeing management making large changes.

 

[Mike man]

Spirit Airlines had $79,090,000 of cash and short term investments at the end of last quarter.

Source?

 

[Dizel8]

And where is B6 going to go for the $$$- back to Lufthansa for more ???

Money in the bank as well and never forget OPM, but yes, I do believe it is a farfetched scenario. Sadly though, all of us would be the last to know.

 

[Beetle007]

Source?

Bureau of Transportation Statistics (www.bts.gov).

 

[elag777]

And where is B6 going to go for the $$$- back to Lufthansa for more ??? They currently have an entire market capitalization of $700M and their shares are trading at around $3.

• Market caps
• B6 704m
• UAL 456m
• LCC 200m
• AAI 156m

still not too bad for a $3 stock though? B6 is saving cash and not wanting to burn it so the above is doubtful...

 

[castle bravo]

"If Spirit shuts down, the investors get to divide this money among themselves and any money raised from selling our assets (minus any outstanding debt owed to other companies)."

OK, but can anyone quantify exactly how much Indigo/Oaktree has already invested into the operation? What was Jacob paid for his share? How much of a realized loss would the $79M be? What are NK's current liabilities as well?
As far as assets- what assets? Headquarters Miramar is reportedly leased, the A/C are largely leased from GECAS and ILFC (ever notice owned by Wells Fargo on some of the registration certificates- look next time you fly!) One would be surprised if NK actually owned a pencil sharpener and a couple of paper clips as assets. Spare parts inventory? What assets?