Loan secured by aircraft

[arefixz]

Hi guys, I would like to know what happen if you can't pay installments over few months. The bank did warn, lower Credit Rating and recalculate duration. If i still can't pay it, CR lowers alot, did somehow bank will force to take away that aircraft after few months or only will continue to lower CR and recalculate loan duration? Assuming there is no bankruptcy warning and money can remain negative with unpayable loan installments.

*If bank wait until bankrupt, they won't just take aircraft that is used for loan. They will take all   

[arefixz]

I guess no one can prove/have no experience about this 

[Talentz]

I guess no one can prove/have no experience about this 

Hi guys, I would like to know what happen if you can't pay installments over few months. The bank did warn, lower Credit Rating and recalculate duration. If i still can't pay it, CR lowers alot, did somehow bank will force to take away that aircraft after few months or only will continue to lower CR and recalculate loan duration? Assuming there is no bankruptcy warning and money can remain negative with unpayable loan installments.

*If bank wait until bankrupt, they won't just take aircraft that is used for loan. They will take all   

I am confused on your question. Are you asking how long you get to be in the "red" until the bank takes your asset(s)?

The answer is 7 real time days before the system auto-bankrupts your company.

As for when the "bank" collects your aircraft... I dunno, I've never had it happen to me while still able to function and pull my company out of the red. Once you start the spiral of death, its very tough to get out of.

The bank refuses to lend you money and unless you can quick sell aircraft to raise capital, your pretty much toast.

Hope that helps,

Talentz

[qunow]

I am confused on your question. Are you asking how long you get to be in the "red" until the bank takes your asset(s)?

The answer is 7 real time days before the system auto-bankrupts your company.

As for when the "bank" collects your aircraft... I dunno, I've never had it happen to me while still able to function and pull my company out of the red. Once you start the spiral of death, its very tough to get out of.

The bank refuses to lend you money and unless you can quick sell aircraft to raise capital, your pretty much toast.

Hope that helps,

Talentz

As in, when aircrafts are used as security instead of regular insecure loan, those aircrafts should go to the bank when the loan cannot be repaid, without going into bankruptencies? Although in real life it can also be part of the bankruptency process

[Talentz]

As in, when aircrafts are used as security instead of regular insecure loan, those aircrafts should go to the bank when the loan cannot be repaid, without going into bankruptencies? Although in real life it can also be part of the bankruptency process

That's what I figured. However, as I stated, once you get into that much trouble, your pretty much done. If every week you are in the red, then you have bigger problems then losing a few aircraft.

You can miss a payment here or there and take a CI hit or p***ed off letter from the bank refusing to issue loans. But once you start the spiral of death, its pretty much over...

Talentz

[gazzz0x2z]

unless the solution is obvious(i.e. raising prices or quick selling a few airplanes - or both). In which case, I've seen doomed companies survive(and die a few years later, but from other problems). But if the solution is not obvious and immediatly efficient, yes, the company is going to die.

[qunow]

That's what I figured. However, as I stated, once you get into that much trouble, your pretty much done. If every week you are in the red, then you have bigger problems then losing a few aircraft.

You can miss a payment here or there and take a CI hit or p***ed off letter from the bank refusing to issue loans. But once you start the spiral of death, its pretty much over...

Talentz

In cases where banks take away aircrafts, if aircraft values are in excess of the debt, then in real life bank would usually refund the difference in amount to the company which sometimes might just be the cash being needed?

[arefixz]

Oopss didn't realise thread still ongoing. Here's my situation.

Sudden delivery of ordered aircraft causing my money goes over -350m, if you check my airline GW4 at WMKK you may understand. My money remain negative, slowly beginning to recover about +60m/month. During these duration, system didn't detect me as bankrupting airline, no warn given and my money remain negative over 4 days.

Im asking that I have pending loan installment and secured by few aircrafts. In real world, if you bought your car by installments, didn't pay for few month then they will force to take away your car. In AWS, I thought the same but until I recovered about 5 days, no action taken by bank. They just lower CR and recalculate duration.
Of course everyone know normal effect of negative money, cannot do check (58 of my aircraft C-check immediately after recover) and I have 6 aircraft grounded by CAA. If things goes for another 3 more days, sure I am dead(BK). Well that's why I ask, afraid aircraft will be taken away while I am facing aircraft shortage right now. As you have guess, the hit in CI is extreme, from 100 to this 

[freshmore]

And that is a lesson on why you keep an eye on future aircraft capital commitments and whether you can afford them or not. I'm not sure there is such a thing as sudden aircraft delivery, you tend to know about it in advance.

I would hazard a guess you are getting close to the point of having them taken away if you miss many more instalments, even if you are recovering.

[gazzz0x2z]

and it might be mandatory to quick sell a few new airframes on the UM. If you're playing current GW2, you should sell them at maximum with a huge profit.

[arefixz]

And that is a lesson on why you keep an eye on future aircraft capital commitments and whether you can afford them or not. I'm not sure there is such a thing as sudden aircraft delivery, you tend to know about it in advance.

I would hazard a guess you are getting close to the point of having them taken away if you miss many more instalments, even if you are recovering.

That sudden aircraft delivery is the aircraft company reschedule your slot. In this case, I scheduled my delivery of 747 with 200m delivery payment to arrive next year. During this time, production stated that it will close in X months, so I place it further back to next year to extend it. They announce production continues but I rechecked the schedule, they change and place it earliest as possible. That sums up why my money can go over -350m.

[qunow]

That sudden aircraft delivery is the aircraft company reschedule your slot. In this case, I scheduled my delivery of 747 with 200m delivery payment to arrive next year. During this time, production stated that it will close in X months, so I place it further back to next year to extend it. They announce production continues but I rechecked the schedule, they change and place it earliest as possible. That sums up why my money can go over -350m.

In this game, you cannot actually schedule delivery further back, unless all of previous slots get taken. Otherwise, manufacturer will compress the line and make delivery become the soonest possinle expected date. As otherwise, manufacturers would have to pay for the labor and oppoturnity cost of keeping the line open for multi years without actually producing anything in it.