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Author Topic: BK soon  (Read 1007 times)

Acogonz

  • Former member
BK soon
« on: February 06, 2012, 02:40:59 AM »
Hi,

I just wanted to share with you something that will happen to my airline tomorrow and I don't understand. Even though my airline has a value of +7 355 696 USD and B credit rating,  tomorrow it's gonna be closed by the bank (according with two messages I've received). I know that my financial state is pretty bad, having around -20 million in cash and -50 million in debts, BUT if I own 5 airplanes of 77 million, that means that the bank could take my airplanes and then let me go on, doesn't it??

I think that there should by an option to negotiate with the bank and give it the security assets to "pay" the loan, having some kind of penalty for that. For example, I have a loan with an initial amount borrowed of 27.500.000 with two F50 as security assets (each one of 15 million). Right now, the remaining amount is 13.700.000, so I should have one of these airplanes free to have a new loan...

PD: Sorry for my english...
« Last Edit: February 06, 2012, 03:01:48 PM by Acogonz »

Offline Infinity

  • Members
  • Posts: 1564
    • Aviation Awareness
Re: BK soon
« Reply #1 on: February 06, 2012, 10:09:33 AM »
You could simply have sold the airplane yourself and gone on.

tdg1986

  • Former member
Re: BK soon
« Reply #2 on: February 06, 2012, 02:51:53 PM »
You could simply have sold the airplane yourself and gone on.

You can't sell an aircraft that's being used as loan security.

Offline Infinity

  • Members
  • Posts: 1564
    • Aviation Awareness
Re: BK soon
« Reply #3 on: February 06, 2012, 06:32:58 PM »
From my understanding, he has 77 million values but only 50 million debt. Either a very bad loan taking strategy or he has a free plane.

Acogonz

  • Former member
Re: BK soon
« Reply #4 on: February 06, 2012, 08:23:49 PM »
I do have 77 millions in assets. The thing it's that i have 50 million in debt (secured by all my planes) and -20 million in cash. Under this situation I don't understand why the bank is coming over me, as I still have positive value.

A bad strategy leasing new planes that will be arriving after a long time, 911, competition and lots of C checks for 732 killed me.



Acogonz

  • Former member
Re: BK soon
« Reply #5 on: February 06, 2012, 09:14:48 PM »
I did have...  :'( BK has happened...

Offline Sami

  • Administrator
  • Members
  • Posts: 14540
    • AirwaySim - Are you the next Richard Branson?
Re: BK soon
« Reply #6 on: February 06, 2012, 09:51:47 PM »
20 million negative cash is unsurvivable for a small firm. The bank does not take in your assets until you are actually bankcrupt as it would be nearly impossible for the AI to determine which planes to take etc. (in this case it would have been the loan security plane though)

Acogonz

  • Former member
Re: BK soon
« Reply #7 on: February 07, 2012, 02:33:59 AM »
20 million negative cash is unsurvivable for a small firm.

I agree with you. But It would be nice if there is an option to renegotiate with the bank, giving it the assets that back a loan paying a penalty (-20% of its value or something like that).

It's kind of weird that an airline with positive value and a B credit rating is put into BK, I don't think that could happen in real life...

PD: I really love this game!!

Nlgravity

  • Former member
Re: BK soon
« Reply #8 on: February 07, 2012, 04:18:00 AM »

It's kind of weird that an airline with positive value and a B credit rating is put into BK, I don't think that could happen in real life

If I remember correctly, in 2008 there was a small company that went bankrupt in real life with a A- credit rating. I forgot the name though.... Actually, it might have been LEHMAN something.... Oh yeah, I think it was Lehman brothers!!!!! ;)

mattb

  • Former member
Re: BK soon
« Reply #9 on: February 07, 2012, 03:01:01 PM »
I agree with you. But It would be nice if there is an option to renegotiate with the bank, giving it the assets that back a loan paying a penalty (-20% of its value or something like that).

It's kind of weird that an airline with positive value and a B credit rating is put into BK, I don't think that could happen in real life...

PD: I really love this game!!

Wrong. Cash flow is king.  Most firms don't go bankrupt due to low valuation or profit. most firms due to collapse due to lack of cash. Pure and simple.

Sulton111

  • Former member
Re: BK soon
« Reply #10 on: February 07, 2012, 06:33:19 PM »
banks as a rule dont care what assets you have they want cash - and if you have none you go under they treat any asset they get after they bankrupt you as a bonus

 

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