FloridaLarry
Well-Known Member
Great Lakes Airlines is again falling behind contractual financial benchmarks. As of June 30th, they are not in compliance with the covenant requirements of their financial loan package. Without going deeply into bean-speak, they are required to maintain a minimum level of certain assets, calculated by a formula that uses a rolling 12 month previous earnings average.
They have until August 28th to cure this problem. They do not expect to catch up by December 31st of this year. Without relief from these requirements from their lender, they will be in default and (a.) no more cash available in their lines of credit, and (b.) lender could foreclose on the assets (primarily the aircraft). So they need to reach new accomodations with the lender.
Now, they've been there before with previous lenders, and no lender wants to just pull the plug and gobble up the losses. This is happening as fuel costs are dramatically lower than in the immediate past.
Jan 1, 2015, 89 pilots; June 30th, 72 pilots with 6 in training.
Not lookin' good.
#s and facts from airline's 10-Q for 2nd Qtr 2015, filed within the week.
They have until August 28th to cure this problem. They do not expect to catch up by December 31st of this year. Without relief from these requirements from their lender, they will be in default and (a.) no more cash available in their lines of credit, and (b.) lender could foreclose on the assets (primarily the aircraft). So they need to reach new accomodations with the lender.
Now, they've been there before with previous lenders, and no lender wants to just pull the plug and gobble up the losses. This is happening as fuel costs are dramatically lower than in the immediate past.
Jan 1, 2015, 89 pilots; June 30th, 72 pilots with 6 in training.
Not lookin' good.
#s and facts from airline's 10-Q for 2nd Qtr 2015, filed within the week.