TSLA
Tesla
-- 292.980 NVDA
NVIDIA
-- 124.920 PLTR
Palantir
-- 84.920 SMCI
Super Micro Computer
-- 41.460 SOUN
SoundHound AI
-- 10.820 
Anyone care to share what they know?
airline will eject debt (800M) i believe i read.
they offered a new crested share clasd type in exchange for their prior shares. none of this seems unexpected to me ajd it is at the expense of all including retail. now , retail takes a loss but not the entire loss here right?
anything we hold right now eould slso in a worst case be swapped for shares in the post-chapter 11 entity or sm I wrong?
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
ColdJoke : 1) Deal between board and debtors: debtors take over, inject no money, form new company and get shares in exchange of current debt, get new debentures equals to current debt notional just longer maturity (convertibles only get a fraction). Board keeps their job. Currently shareholders will own nothing.
2) Although some people say they asked lawyer can it is legal. However my experience is they cannot do in US law system without shareholders meeting. Typically board can sell company in relatively cheap price, can issue huge amount of new shares at market (very cheap) to Bond holders for conversion, can offer a mixed shelf to white knight who want to buy out maturing debt.
3) Judge can choose to ask new company has some of our shares. But number will vary. Decision will be made at least one month. Typically 3 months. (I won’t buy back my shares at this price, at least I’ll wait for 1 month so I got tax losses)
RVLTN OP : Thank you for that reply. I know as an expert in aviation , a little bit on spirit but I have to admit this whole scenario is quite odd . It would seem to me that JetBlue was somehow able to bleed Spirit out while they were in a proposed and expected merger. They were waiting for anti-trust review etc and spirit went in flush with cash , a monster fleet of new Airbus ( these are in massive demand globally as are trained pilot - these two things alone are likely worth hundreds of millions)
When the merger ‘fell apart’ it was suddenly the tail of JetBlue not wanting spirit due to their financial position (huh) and then not a year later here we are. Spirit is heavy competition to all airlines and more importantly they drive the average revenue per mile flown way way down. Let’s just say they are not wanted around. I have a feeling it’s sinister in this way but the carrier still has worth unless it was hollowed out so badly that the debt is attached and monumental.
Will be interesting to see if the airbuses, pilot crews and any real estate in south Florida + slot congested airport freedoms get put on the market or swept out in back room deals. This could be a carcus and if any of those things j mentioned go away , drop the meat and run.
ColdJoke RVLTN OP : I invested lightly before the merger failed, but invested heavily afterwards. Cost issue is for every company after union actions. As my previous post they can easily return to profit if making correct decision, but hell the board and management are corrupted and are stealing our shares! Spirit will live but we are going to lost everything (common sense is judge will make a “fair” decision, but in bankruptcy court, equity holders are most junior)