Airline bankruptcies, ceased operations, restructurations

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sdbelgium
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Re: Airline bankruptcies, ceased operations, restructurations

Post by sdbelgium »

Norwegian just dismissed 2/3rd of their workforce. All subsidiaries except Norway, Italy and France have been declared bankrupt. This includes all cooperations with OSM Aviation.

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Re: Airline bankruptcies, ceased operations, restructurations

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'At the beginning of a critical fortnight for the airline, Norwegian laid out the scale of the task ahead – and the hit it expects bondholders, aircraft lessors and shareholders to take in order for the airline to access a 3bn kroner (£230m) state bailout.
Even that may not be enough, it warned, in its “base scenario”, where operations only restart in earnest next summer. '
https://www.theguardian.com/business/20 ... oronavirus

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Re: Airline bankruptcies, ceased operations, restructurations

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Could I suggest a dedicated thread about airlines seeking bailouts ?
Excerpt from previous link https://www.theguardian.com/business/20 ... oronavirus
'Virgin Atlantic Sir Richard Branson’s Virgin Group says it is not looking to sell the airline, after appointing bankers Houlihan Lokey to look for new investors. Branson however could potentially sell down his majority 51% stake. The US carrier Delta, which owns 49%, has said it will not put further funds into Virgin Atlantic as it seeks to preserve its own core operation. Virgin Atlantic says it remains in “constructive talks” with the UK government, which has batted away its initial requests for help worth £500m in loans and credit guarantees.

EasyJet As a listed firm with aircraft assets, EasyJet was able to tap the government and Bank of England for a £600m loan under its Covid Corporate Financing Facility. It says it can now survive another nine months at the present rate of cash burn.

Lufthansa Shares rose in the German airline on Monday after ministers insisted that they would not let the flag-carrier be a casualty of the pandemic. Talks continue towards a multibillion state bailout. The group’s Austrian Airlines subsidiary has already been pledged €870m (£759m) by Austria’s government.

Air France-KLM About €10bn in total will be provided by the French and Dutch governments to bail out the twin national carriers, in the form of credit guarantees and loans. The Netherlands has demanded executive pay cuts and the suspension of dividends and bonuses.

US carriers Two pots of $25bn have been earmarked for airlines from the US’s $2.2tn stimulus package. The first will provide grants and cheap loans according to each airline’s payroll, and be given on condition of keeping staff employed. Airlines can apply for additional loans from the second pot. The biggest carriers, such as United, American Airlines and Delta, are expected to receive up to $5bn each from the first tranche.'
--
What's in store regarding a possible SN bailout ?

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Re: Airline bankruptcies, ceased operations, restructurations

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TLspotting wrote:
20 Apr 2020, 14:47
Virgin Australia is most probably the next airline to fall.
Virgin Australia administrators will borrow US$128 million to keep the airline flying as it sifts through potential suitors in preparation for a sale.

Virgin Australia administrators have told creditors that federal and state governments are critical to the collapsed airline’s revival plans, raising the prospect taxpayers’ money could yet be used to ensure its survival. Some of the 20 bidders may team up.
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Re: Airline bankruptcies, ceased operations, restructurations

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Avianca Holdings (Colombia/Panama) and certain of its subsidiaries and affiliates filed voluntary petitions under Chapter 11 of the US Bankruptcy Code to preserve and reorganise Avianca’s businesses. Avianca will continue to operate during this process.

https://www.aviation24.be/airlines/avia ... cy-in-usa/

Avianca will wind down its Peru division, and cut back the fleet of other carriers, as part of its restructuring under Chapter 11 bankruptcy protection. Fourteen aircraft are listed as excess, including one B787-8, two A330-300s, seven A320s, two A321s, and two A319s.
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Re: Airline bankruptcies, ceased operations, restructurations

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Virgin Atlantic will begin pitching to potential investors on 11 May 2020, as it seeks to avoid collapse. The carrier also appointed restructuring specialist Alvarez & Marsal (US).

Virgin Atlantic is being eyed by private equity giants Greybull Capital (UK) and Apollo Global Management (US), who plan to open talks with the airline’s advisors this week. Temasek (Singapore) is said to be interested as well.

Virgin Group founder Richard Branson is considering selling more than 25% of his stake in Virgin Galactic Holdings, a move that would provide about US$500 million to support his broader Virgin business empire, including Virgin Atlantic.
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Re: Airline bankruptcies, ceased operations, restructurations

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sn26567 wrote:
11 May 2020, 21:49
Avianca Holdings (Colombia/Panama) and certain of its subsidiaries and affiliates filed voluntary petitions under Chapter 11 of the US Bankruptcy Code to preserve and reorganise Avianca’s businesses. Avianca will continue to operate during this process.
Colombia is looking at aid to save Avianca after the airline filed for bankruptcy in the US. The government is not interested in taking shares in the airline.
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Re: Airline bankruptcies, ceased operations, restructurations

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TLspotting wrote:
06 Apr 2020, 16:09
Air Italy, announced (26 March) to have received some unbinding offers. The two liquidators will examine them for the appropriate evaluation.
Air Italy (which I thought completely out of the game) applies for renewal of its exemption authority to provide foreign scheduled and charter air transportation to the full extent of the open skies air transport agreement currently in place between the US and the EU.

Avianca Holdings informs that the New York Stock Exchange announced has suspended trading in the company’s American Depositary Shares as a result of the carrier’s filing of Chapter 11.

Avianca Holdings intends to utilise its cash on hand, combined with funds generated from its ongoing operations to support the business during the court-supervised reorganisation process. Talks with the government for state aid continue.
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Re: Airline bankruptcies, ceased operations, restructurations

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CityJet had its Dutch unit declared bankrupt by an Amsterdam court as pilot wages could no longer be paid.
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Re: Airline bankruptcies, ceased operations, restructurations

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sn26567 wrote:
13 May 2020, 22:21
Avianca Holdings informs that the New York Stock Exchange announced has suspended trading in the company’s American Depositary Shares as a result of the carrier’s filing of Chapter 11.

Avianca Holdings intends to utilise its cash on hand, combined with funds generated from its ongoing operations to support the business during the court-supervised reorganisation process. Talks with the government for state aid continue.
Avianca Peru agreed to terminate its operations in Peru and begin a dissolution and liquidation process under local Peruvian law. Avianca will continue to serve to/from Peru through its airlines in Colombia, El Salvador and Ecuador.

Comair (the British Airways franchise in South Africa) has “reasonable prospects” of surviving, its administrators said after the airline sought a form of bankruptcy protection earlier in May 2020.

Thai Airways International workers’ union will not oppose the government’s plan to reduce holdings in the airline and petition for restructuring with the bankruptcy court.

TAP Air Portugal to enter state talks over state assistance and the current shareholding. The government says no scenario for the airline can be ruled out, including insolvency
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Re: Airline bankruptcies, ceased operations, restructurations

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sn26567 wrote:
14 May 2020, 23:22
CityJet had its Dutch unit declared bankrupt by an Amsterdam court as pilot wages could no longer be paid.

CityJet to begin a consultation process on redundancies that could lead to up to 276 employees across its Irish and UK operations leaving the organisation. A further 400 staff in its operations in various cities across Europe also look likely to lose their jobs
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Re: Airline bankruptcies, ceased operations, restructurations

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sn26567 wrote:
20 May 2020, 23:13
Thai Airways International workers’ union will not oppose the government’s plan to reduce holdings in the airline and petition for restructuring with the bankruptcy court.
Thai Airways International submitted a request to a bankruptcy court for the rehabilitation of its debt, which if approved would give the airline time to negotiate with its creditors.
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Re: Airline bankruptcies, ceased operations, restructurations

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LATAM seeks to terminate leases on 19 planes as part of their Chapter 11 restructuring, including one A319, one A302, 11 A321s, two A350s, and four B787-9s.
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Re: Airline bankruptcies, ceased operations, restructurations

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sn26567 wrote:
26 May 2020, 21:32
sn26567 wrote:
14 May 2020, 23:22
CityJet had its Dutch unit declared bankrupt by an Amsterdam court as pilot wages could no longer be paid.

CityJet to begin a consultation process on redundancies that could lead to up to 276 employees across its Irish and UK operations leaving the organisation. A further 400 staff in its operations in various cities across Europe also look likely to lose their jobs
One more nail in CityJet's coffin? Aer Lingus has cancelled its contract with Cityjet which had been providing flights on Aer Lingus’ behalf on a number of routes, including between Dublin and London City Airport.
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Re: Airline bankruptcies, ceased operations, restructurations

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sn26567 wrote:
27 May 2020, 23:02
LATAM seeks to terminate leases on 19 planes as part of their Chapter 11 restructuring, including one A319, one A302, 11 A321s, two A350s, and four B787-9s.
LATAM Airlines Group may receive state aid or guarantees from the government, who is monitoring the carrier’s situation day-by-day, and will decide appropriate action if needed.

Latam Brazil may have to return at least 13 planes as the lessor refused an initial proposal to renegotiate the operating contracts.
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Re: Airline bankruptcies, ceased operations, restructurations

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sn26567 wrote:
26 May 2020, 21:42
sn26567 wrote:
20 May 2020, 23:13
Thai Airways International workers’ union will not oppose the government’s plan to reduce holdings in the airline and petition for restructuring with the bankruptcy court.
Thai Airways International submitted a request to a bankruptcy court for the rehabilitation of its debt, which if approved would give the airline time to negotiate with its creditors.
Lessor Amedeo Air Four Plus says Thai Airways International has not paid any lease payments on its four aircraft since 22 May 2020. Amedeo is awaiting further news of the airline planners’ intentions, which might not become clear until much nearer to the August 2020 hearing.
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Re: Airline bankruptcies, ceased operations, restructurations

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sn26567 wrote:
14 May 2020, 23:22
CityJet had its Dutch unit declared bankrupt by an Amsterdam court as pilot wages could no longer be paid.
CityJet had its French subsidiary placed in compulsory liquidation by the Bobigny Commercial Court, resulting in the loss of around 80 jobs.

A positive development, though, for Cityjet as CRJ900s resume operations on a limited number of SAS routes from 8th June says Routes Online.
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Re: Airline bankruptcies, ceased operations, restructurations

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Ravn Air Group obtains court approval to move forward with its “bidding process for the airline to sell all, substantially all, or a substantial part of its assets.”
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Re: Airline bankruptcies, ceased operations, restructurations

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sn26567 wrote:
04 May 2020, 23:08
TLspotting wrote:
20 Apr 2020, 14:47
Virgin Australia is most probably the next airline to fall.
Virgin Australia administrators will borrow US$128 million to keep the airline flying as it sifts through potential suitors in preparation for a sale.

Virgin Australia administrators have told creditors that federal and state governments are critical to the collapsed airline’s revival plans, raising the prospect taxpayers’ money could yet be used to ensure its survival. Some of the 20 bidders may team up.
Virgin Australia Holdings administrator said it expected to shortlist two preferred bidders early next week after parties confirmed non-binding indicative proposals to acquire the airline. Brookfield Asset Management (Canada) submitted a proposal on 29 May 2020.

Virgin Australia could be restarted with as few as 15 B737s in the air if the bid by BGH Capital (Australia) for the airline is successful, reflecting the depressed state of travel demand in the pandemic.
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Re: Airline bankruptcies, ceased operations, restructurations

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sn26567 wrote:
28 May 2020, 22:22
LATAM Airlines Group may receive state aid or guarantees from the government, who is monitoring the carrier’s situation day-by-day, and will decide appropriate action if needed.
Chilean government will make facilities available to LATAM to help the company to “quickly get out” of its current situation, after the airline filed for bankruptcy in the US. LATAM has received a series of key approvals from the courts, The carrier was authorized to operate passenger and cargo flights, subject to demand and travel restrictions.

Ravn Air Group is scrambling to find a buyer that can keep the company intact as it emerges from bankruptcy, rather than seeing its planes sold off piecemeal through a liquidation process.

Thai Airways International creditors are likely to keep afloat to pay off debts, raising hope the airline’s rehabilitation plan will pass the court’s scrutiny, according to a source in the Finance Ministry.
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