Why Doesn't AA Declare Chapt 11?

The title says it all. If all their "major" competitors rae operating
with the advantages of Chapt 11, why doesn't AA go that route? Can't
their accountants fiddle the books enough to get them a quick in and
out Chapt 11 and renegotiate various contracts in the process?

The title says it all. If all their "major" competitors rae operating
with the advantages of Chapt 11, why doesn't AA go that route? Can't
their accountants fiddle the books enough to get them a quick in and
out Chapt 11 and renegotiate various contracts in the process?

- Your stock tanks even further
- Creditors get to have a major say in the running of your business

Cheers,
Geoff Glave
Vancouver, Canada

"Geoff Glave" wrote in message
news:vwqWe.239695$HI.9905@edtnps84...
The title says it all. If all their "major" competitors rae
operating
with the advantages of Chapt 11, why doesn't AA go that route?
Can't
their accountants fiddle the books enough to get them a quick in
and
out Chapt 11 and renegotiate various contracts in the process?

- Your stock tanks even further
- Creditors get to have a major say in the running of your business

I guess their approach of privately ___threatening___ Chapt 11 was the
best of both worlds. But IIRCm there have been some one-day Chapt 11
wonders. Everyone on board BEFORE the filing.

"Robert J Carpenter" wrote in message
...
The title says it all. If all their "major" competitors rae operating
with the advantages of Chapt 11, why doesn't AA go that route? Can't
their accountants fiddle the books enough to get them a quick in and
out Chapt 11 and renegotiate various contracts in the process?



Simple. Once you're in Chapter 11, you're no longer in full control over
your destiny. That simple. There are significant oversight cost (United
has spent over $750 million on their bankruptcy fees alone while in
reorganization), and the shareholders generally lose everything. Chapter 11
is not a step to be taken lightly - look at Hawaiian Airlines where
management was essentially thrown out and a Trustee appointed to operate the
airline through their reorganization (they emerged from bankruptcy a couple
of months ago).

Jeff