tcook052
Mar 28, 05, 10:36 am
http://www.forbes.com/finance/2005/03/28/cz_rl_0328soapbox_inl.html
MIAMI - Delta Air Lines' year-end 2004 financial statements paint a picture of a company for whom the bell tolls. The balance sheet shows a company with $21.8 billion in assets and $27.6 billion in debts. Put another way, it has a negative net worth of $5.8 billion, which means that in bankruptcy, shareholders and a lot of creditor claims will be wiped out. Since the company says it has insufficient cash to survive the year, a bankruptcy filing this year would seem inevitable.
MIAMI - Delta Air Lines' year-end 2004 financial statements paint a picture of a company for whom the bell tolls. The balance sheet shows a company with $21.8 billion in assets and $27.6 billion in debts. Put another way, it has a negative net worth of $5.8 billion, which means that in bankruptcy, shareholders and a lot of creditor claims will be wiped out. Since the company says it has insufficient cash to survive the year, a bankruptcy filing this year would seem inevitable.