BeechBaby wrote:
If it were a pre pack, homework is generally done well in advance, to prevent any hiccups. I.e, those that are owed getting anything..
Indeed. But it is also useful keeping certain creditors fully informed. 
…is there a behavioural link between owner pilots and corporate restructuring?
…in a different galaxy long ago was known to advise unsecured creditor committees…having to establish ‘expert’ credentials, say in a Dallas court, makes an FAA oral easy.
If the outcome was saving jobs, and setting up new governance, this work was actually socially useful. It’s a pity Europe doesn’t have a Chapter 11 tradition.
Mmmm, would really depend how it was structured. The beauty will be in the lease set ups, and if operating companies were disengaged from the commercial property rental incomes. I honestly do not know how it was set up. It did look like a wee bit like a maze, always music to the ears of the successful pre packer……also a lot will depend on the current value of assets, and any realisable income from sale. If it were a pre pack, homework is generally done well in advance, to prevent any hiccups. I.e, those that are owed getting anything..
Can the airport recover the commercial property income which Erinaceous sold to some banks?
Hopefully if the current airport operators continue with that and fully take it on, the commercial property element will attract institutional investors and scotch any prepack involving the current owners.
Dave, that had been my initial thought. Given the council are owed, and they do not want to operate it, sets up a classic prepackaged opportunity. Done well, spectacular way to shift debt. Sir Shifty……….
Pre-pack and a Pheonix?
The key is hopefully professionals with no vested interest resolve the impasse the directors of the company have reached. By taking matters out of their hands decisions can be made which might not have otherwise been possible. Unfortunately the costs involved are usually substantial, sometimes arguably out of proportion to the underlying assets which means it is usually the case that the unsecured creditors receive next to nothing.
Resolving value is made harder by the risk of litigation at every step should a chink be left in the armour.
I wish valuing something was so simple! You make the process sound so easy – it isn’t.
Secured creditors have their own security. In insolvency the key is the unsecured creditors. Value is simple – how much money do they get.
