UAIR enters 11 with 750M cash

[lowecur]

This is down $225M from the last Q. Much of that I'm sure is the downpayment to the lawyers prior to entering 11.

The judge has reduced the minimum cash on hand requirement to $585M by Oct 15th from the previous ATSB requirement of $725M, which will be reviewed and lowered if needed as of that date. In essence, the ATSB backed loans are being used as the DIP. Collateral for the ATSB backed loans remains close to $1.5B (including existing cash - distressed value is a little less), thus giving the judge and ATSB the time and latitude to allow for proper decision making.

The Shuttle has probably been put up for sale along with the wholly owned regionals. I doubt the regionals will garner any interest, as there value is based on the long term survival of UAIR.

http://www.bankrupt.com/usair063.txt

 

[OhDannyBoy]

sale of WOs

The Shuttle has probably been put up for sale along with the wholly owned regionals. I doubt the regionals will garner any interest, as there value is based on the long term survival of UAIR.

Do you mean sale of the WO's as existing companies? or the piecing out of lines and/or equipment?

 

[FDJ2]

This is down $225M from the last Q. Much of that I'm sure is the downpayment to the lawyers prior to entering 11.

Let me see, they have about $200M for CH11 lawyers, but they don't have $10M to make a pension payment.

 

[lowecur]

Let me see, they have about $200M for CH11 lawyers, but they don't have $10M to make a pension payment.

Ya gotta luv it!

 

[Flying Freddie]

Pilots are a dime a dozen, but a good lawyer is worth his weight in our blood.

 

[FLB717]

So Bleed the lawyer like a orange and through the peel away.

 

[lowecur]

Do you mean sale of the WO's as existing companies? or the piecing out of lines and/or equipment?

There only value is as a feeder to UAIR, so sale as existing companies makes the most sense. If there is a sale, you can bet it will be contingent on new contracts throughout the employee groups, and the exit of UAIR from 11. I would also bet IAM's has seen it's better days, as maintenance will be shipped to AL.

 

[Beantown]

Let me see, they have about $200M for CH11 lawyers, but they don't have $10M to make a pension payment.

The pension payment due tomorrow was in the neighborhood of 150M not 10M. Also I don't think all the 200M lost in cash went to lawyers. Look who is your source on that one. -Bean

 

[FDJ2]

The pension payment due tomorrow was in the neighborhood of 150M not 10M. Also I don't think all the 200M lost in cash went to lawyers. Look who is your source on that one. -Bean

My bad, it was $110M, which is still half of what they appear to be paying their chapter 11 attorneys.

US Airways Group Inc. (NasdaqNM:UAIR - News) told a bankruptcy court on Monday it would skip a $110 million pension payment due Wednesday as it looks to slash costs and avoid liquidation after filing for protection from its creditors over the weekend.

 

[lowecur]

The pension payment due tomorrow was in the neighborhood of 150M not 10M. Also I don't think all the 200M lost in cash went to lawyers. So where do you suppose it went? UAIR made money the last Q, and the summer is typically a strong Q, so I have my doubts most of it is operational. Of course I'm sure there are lots of attorneys looking to do pro-bono on a large BK like this. Look who is your source on that one. -Beanbrain

.....

 

[Habib]

What will happen to the new airplanes that US is getting, the RJ's and E170's???

 

[Beantown]

"So where do you suppose it went? UAIR made money the last Q, and the summer is typically a strong Q, so I have my doubts most of it is operational. Of course I'm sure there are lots of attorneys looking to do pro-bono on a large BK like this. Look who is your source on that one. -Beanbrain"
-----------------------------
Lowecur, Dude, you come on this board acting like you are some expert yet almost everything you say it total crap and everyone on here knows it.


The load factor a U, starting in the second week of Aug dropped like the wall of the grand canyon. Flights on the rj that had been averaging 40-50 people were only bringing in 15 to 25. Same on mainline. The end of the summer and the start of CH 7/11 talk probably had a lot to do with it. These people on average buy there ticket a month+ in advance. Because of this, U would have starting seeing a serious depletion of cash this past Q. Not exactly rocket science. I'm not saying all 200M are becauce of this but it is one of many reasons.


I read an article (I'll find it if it is the only thing that will shut you up) that said U had spend 2.5M to a law firm leading up to the B.K filing. Not exactly 200M like you stated like it was fact. -Bean

 

[lowecur]

Lowecur, Dude, you come on this board acting like you are an expert and almost everything you say happens. Thank you.

The load factor a U, starting in the second week of Aug dropped like the wall of the grand canyon. Flights on the rj that had been averaging 40-50 people were only bringing in 15 to 25. Same on mainline. So, you're saying that in less than a month they lost all this money? The end of the summer and the start of CH 7/11 talk probably had a lot to do with it. These people on average buy there ticket a month+ in advance. If they buy their ticket a month in advance, that would mean they stopped buying in the middle of July. Seems to me Bronner made his statement a long time after that. Because of this, U would have starting seeing a serious depletion of cash this past Q. Not exactly rocket science. Yes, it must be. I'm not saying all 200M are becauce of this but it is one of many reasons.


I read an article (I'll find it if it is the only thing that will shut you up)OK, go look for it (it's probably in the head where you left it), but I warn you - it won't even make a dent. that said U had spend 2.5M to a law firm leading up to the B.K filing. Costs leading up to BK are not exactly the same as continued court appearances on a daily basis throughout BK. Not exactly 200M like you stated like it was fact. -Beanbrain

.....

 

[Publishers]

costs

There are a bunch of costs associated with BK and attornies are just one of them. Accounting is another as all of the debt has to be detailed. While cash at airlines seems to be a bunch, the fact is that it can go away in a hurry with payments made on aircraft orders, and debtors that will not continue service to a BK airline.

Take someone like Eurocontrol who may refuse to continue on a credit basis.

 

[halfmoon]

585 million dollars of unrestricted cash by oct 15. Even with that reduced can they do that? this time of year is dead, plus with the cancelled flights due to FL hurricanes, reduced pax due to ch11, GO fares..... i just don't know

This is not looking good. NOT GOOD at all!!

 

[On Your Six]

585 million dollars of unrestricted cash by oct 15. Even with that reduced can they do that? this time of year is dead, plus with the cancelled flights due to FL hurricanes, reduced pax due to ch11, GO fares..... i just don't know

This is not looking good. NOT GOOD at all!!

We keep saying this, but like the energizer bunny it keeps going and going and going....

Is it at all conceivable that it could downsize to the point that it could focus on a specific niche (say East Coast to Caribbean and Northeast-Florida flights) with a far reduced employee group at much lower wages? It could shed the shuttle and pare its network to only the profitable routes and reduce its fleet to just Airbus and EMB-170s - couldn't it? Obviously, to everyone's detriment, wages/benefits would probably be reduced big time to accomplish that.

Or, is it just too late with the high fuel prices and low-traffic fall period approaching? I think JetBlue has it right by just focusing on the Airbus and EMB-190 vs. so many fleet types.

 

[lowecur]

585 million dollars of unrestricted cash by oct 15. Even with that reduced can they do that? this time of year is dead, plus with the cancelled flights due to FL hurricanes, reduced pax due to ch11, GO fares..... i just don't know

This is not looking good. NOT GOOD at all!!

I think it looks great. They have $750M as of Sept 10th, and the apparent blessings of the ATSB to use up to $165M of the guaranteed loan as DIP financing until 10/15. In a worse case scenerio even if UAIR was allowed to use every bit of the $750M they have, the ATSB would be first in line once the collateral is sold - sooo the Feds lose nothing.

I will even go as far to say that the ATSB money may be used for exit financing if they can get everything done by the 1st of the year. Under that scenerio, even Bronner would get his money back as there would be no need to issue new stock.

Barring a strike, I like their chances.

 

[SWA/FO]

What? You like their chances?

 

[PCL_128]

What? You like their chances?

You have to understand, Lowecur is an idiot. He knows very little about business and even less about aviation. Ignoring him is the best thing to do.

 

[General Lee]

Lowecur is an analyst, not a pilot. He likes to get info on these boards and then tries to apply them to aviation and then tries to make money. If you know that, then you can understand where he is coming from....


Bye Bye--General Lee