Independence Air iClub - Bankrupt Rumors and CFO

Hey everyone,

I was thinking about something today while driving to work. Since the CFO of Independence Air has resigned, but is staying until 10/28. I don't know if he would stay if he knew the company was going down, unless he knows its going down and thats why he is leaving but why would you stay until the 28th?

Just something to think about and I'm sure the reason will come out sometime.

Also Richard Surratt is now with www.proquestcompany.com


Steven

Hey everyone,

I was thinking about something today while driving to work. Since the CFO of Independence Air has resigned, but is staying until 10/28. I don't know if he would stay if he knew the company was going down, unless he knows its going down and thats why he is leaving but why would you stay until the 28th?

Just something to think about and I'm sure the reason will come out sometime.

Also Richard Surratt is now with www.proquestcompany.com


Steven

It is possible that he has found a better oppurtunity. He is probably staying out of respect for the airline and his successor. He wants to help the next CFO and show him the ropes.

He wants to help the next CFO and show him the ropes.
Are these the ropes he's going to show? (http://members.aol.com/RVSNorton/Lincoln5.html)

The new position may not be open just yet for whatever reason. Also, staying around a couple weeks is the wise thing to do for one's reputation.

It's usually a slightly better sign when they stay around -- that means the board wasn't so unhappy with them they were thrown out immediately.

Ultimately, it probably doesn't mean anything. Overall the situation isn't going to change whether they stay an extra few weeks or not, for better or for worse.

It's October 17, and (unless they've done it extremely quietly and not told anyone) FLYi hasn't visited the bankruptcy court.

They're either very brave or very stupid.

I was thinking the same thing.

I was thinking the same thing.

I haven't posted on this forum, primarily as I haven't flown FlyI. I did fly them when they were ACA. I have been watching with interest what is actually going on with the airline, and the presumed BK that everyone believes is on its way. Now I thought I would add my $0.02 to this as the Oct 17 date is here and upon us.

It is my belief that FlyI didn't see the Oct 17 date as a real change to them as far as the BK rules went. The only major changes are you have a 18 month exclusivity time and that is it, and you have to make quicker decisions with regards to accepting and rejecting debt obligations. Given FlyI's financial state, and relatively small size my guess is that management already knows what it is going to do with the debt obligations vis a vis leases for aircraft and ground facilities. Also with the exclusivity period only being 18months it may be easier for them to get DIP financing than it would have been before. (the lenders know when they can get what ever is left over if the BK experience fails). Further management probably believes that they will be out of BK one way or the other within the 18month window.

The other thing that has crossed my mind is that FlyI may go the way of TWA. In other words management may be working with another airline to provide the trip through BK with the net result is some of FlyI ending up with another airline, and the rest of the company simply disapearing.

I think management is slowly getting a grasp on things in the new airline enviornment (after the overly rosey picture they painted when the went on their own). They overexpanded and now are refocusing more on the eastern half of the US. Now will they survive going head to head with B6, who I would say is their primary competetor? I really cannot say. Only time will tell.

Maybe he's sticking around until the end of the month because beyond that they won't need a CFO! :eek: The change in bankruptcy laws and filing by October 16th is only important if you are planning on reorganizing (Chapter 11), Chapter 7 here we come! :p

Bankruptcy 101: Chapter 7 is liquidation. Chapter 11 is for corporate reorganization. Chapter 13 is for individual reorganization.

A point of clarification: it is not necessary to file Chapter 7 in order to liquidate - an orderly wind-up of a company's operations can take place within the context of Chapter 11.

Bankruptcy 101: Chapter 7 is liquidation. Chapter 11 is for corporate reorganization. Chapter 13 is for individual reorganization.

Minor point of order: While you might think that Ch 11 is reserved for corporate reorgs, last time I looked it was available even to sole proprietors. May have changed since then. :)

Maybe he's sticking around until the end of the month because beyond that they won't need a CFO! :eek: The change in bankruptcy laws and filing by October 16th is only important if you are planning on reorganizing (Chapter 11), Chapter 7 here we come! :p

Read the post above you. MSY-MSP hit this one on the nose in my opinion. DH is not a UA. Staying in bankruptcy for an extended amount of time is simply not an option. Yet, taking every piece of information and twisting it to mean that Ch. 7 is imminent is ridiculous.


Cheers.

Bankruptcy 101: Chapter 7 is liquidation. Chapter 11 is for corporate reorganization. Chapter 13 is for individual reorganization.

Ch. 7 is a liquidation in the hands of the Chapter 7 Trustee - no say so by the (former) business over the operation. Business must (generally) shut immediately. The Ch. 7 Trustee can get an operating order if it looks like the business is worth more to sell as a going concern (very very rare).

Ch. 11 is a reorganization for individuals that bust the debt limits for Ch. 13, and for corporations. Corporations CANNOT file a 13. A corporation that wants to direct its own orderly liquidation may choose to do so under 11, but runs the risk of being converted to 7, or have a Ch. 11 Trustee appointed.

Ch. 13 is an individual repayment plan, where certain debts must get paid and others get paid according to ability, amount creditors would get in a 7 liquidation, and many other factors. It gives time to cure arrearages on secured debt and many other beneficial tools. It does a LOT LESS than it did 2 days ago.

Ch. 12 is similar to a 13, for family farmers.

Ch. 9 is for government entities

Ch. 15 has been effective for a day, and I know nothing about it.

unfortunately, flyi will probably go chapter 7.

The other thing that has crossed my mind is that FlyI may go the way of TWA. In other words management may be working with another airline to provide the trip through BK with the net result is some of FlyI ending up with another airline, and the rest of the company simply disapearing.

Not likely IMO. TWA had a FF base, a fortress hub at STL, gates in good locations at many airports, and A/C that were of use to AA. If anybody else was interested in what FlyI has, I'd think they'd be better off buying it out of BK than taking over the whole carrier. That goes especially for the employees, many of whom have years of seniority built up at FlyI and Atlantic Coast -- it would be better to pick them up off the unemployment line, let them start over with new hire wages, and avoid integration seniority hassles.

TW also had slots and route authorities that were worth something.

I'm beginning to wonder if FlyI came up with some "stay out of bankruptcy" financing a couple weeks ago. How else has it managed to stay afloat?

I'm beginning to wonder if FlyI came up with some "stay out of bankruptcy" financing a couple weeks ago. How else has it managed to stay afloat?

The refunded Airbus deposit maybe?