Originally Posted by socrates
NWA has not been forced to use DIP financing and I don't believe they see the need to secure exit financing either, remember NWA has a TON of cash on hand and they have always said they would self finance their trip through bankruiptcy
NW
had a ton of cash, all of which is now more than laid claim to by its creditors.
Unrestricted cash stands at a paltry $800m, which is size-for-size adjusted about 40% above the low where US Airways was due to be liquidated without its last minute rescue last summer.
This is not a liquid-enough position to run the airline on exit. Thus a big chunk of any cash the "new" NW has on exit will be from new investors.