That dastardly bank

[auerbacs]

Hello all, I have another question for you.

I currently have two loans out both of which are backed by two of the three planes that I own. So I can still loan against the third plane that I own. However, I also have a rather hefty deficit in cash of about 1 million. I can only secure a maximum of 600,000 in new loans even with the plane that I own which has no loans associated with it, so I'm going to have a cash deficit no matter what. Is it impossible to make the loan payments when you have a cash deficit? You can certainly pay for regular maintenance and passenger fees and such when you're in the red, does that not also apply to loan payments? On the bright side, my airline is making good profits and is slowly heading towards being in the black once more (and the company value is positive, I might add).

So, my question is whether the bloody bank is going to come and steal my planes. Do you need to have positive cash to pay loan payments? I guess I could sell one of my planes to put me the black if need be, but that's annoying. Would there be any difference being only 500,000 in the red in cash as far as loan payments are concerned, or is that the same as being over a million in the red? Because I'm afraid I'll take out a third loan to get down to -500,000 in cash only to see the bank come and take all three of my planes...

Thanks for your help as always. I would make a lot more mistakes than I already do without the advice of the AWS community!

Auerbacs

[Sigma]

I had thought that being in the red only a little bit (and I can't even quantify 'little') would still allow you to make your loan payments, as I thought I'd done it before.  But I really don't remember. 

I wish I could help, but I try to spend as little time in the red as possible, so I really can't remember for sure, and surely don't know what any "limit" on the negative that you're allowed is.

[Sami]

Bankers are not pilots, so I wouldn't worry them getting the planes very soon. 

[auerbacs]

Hmm, so cryptic Sami. I'm just going to call the banks bluff then and see if the creditors come...

Thanks to both of you for your responses, however cryptic they may be!