December 2007 (p9) - Annual Awards

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Pierre Mare
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December 2007 (p9) - Annual Awards

Post by Pierre Mare » 21 Dec 2007, 16:22

The last article on the page talks about Delta Air Lines & Northwest Airlines' comebacks from bankruptcy.

I have read of these bankruptcy filing in previous issues of Latitude, but being in South Africa, I'm not familiar with this procedure. :oops:

Could someone perhaps explain to me (and others) how this comes about, what it entails and how the airlines manage "to have a comeback" from bankruptcy, please?

Thanks.
Keep flyin', be free :P

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bhowie4
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Re: December 2007 (p9) - Annual Awards

Post by bhowie4 » 24 Dec 2007, 20:43

Pierre Mare wrote:The last article on the page talks about Delta Air Lines & Northwest Airlines' comebacks from bankruptcy.

I have read of these bankruptcy filing in previous issues of Latitude, but being in South Africa, I'm not familiar with this procedure. :oops:

Could someone perhaps explain to me (and others) how this comes about, what it entails and how the airlines manage "to have a comeback" from bankruptcy, please?

Thanks.


Pierre-
Okay, I'm by no means any sort of expert on bankruptcy or finances (although the wife does let me balance the checkbook :lol: ), nor am I an expert on Delta or NW's particular situation, but here goes:

Bankruptcy is for individuals, or in this case companies, that acquire too much debt from creditors that they are unable to pay back. When a company or individual declares bankruptcy, there debts are erased completely by a court of law without having to pay back the creditors. While this may sound like a pretty sweet deal, you become essentially blacklisted to other creditors as no one will want to lend money to you. While it doesn't mean you have to go out of business, it makes it a heck of a lot more difficult to borrow money to expand, repair or improve on your business. Hope that gives you some idea of what bankruptcy means here in the US.

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Terry Healy
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Post by Terry Healy » 24 Dec 2007, 20:46

It's the same in the UK as the US, only I think there is a certain period of time before you can become a registered company director again..
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