FloridaLarry
Well-Known Member
Great Lakes has executed a 5th Amendment - 3rd Forbearance agreement with its lenders on September 23rd. As expected, GLA remains in breach of three financial covenants in the original funding agreement from 2011.
This forbearance lasts until December 1, 2014 or until GLA commits additional breaches (pretty standard language). Their interest rate jumps another 2% per year, and they'll pay additional fees and expenses.
The big new news is the GLA has agreed to enter into a new funding agreement with a 3rd party (unspecified), NLT October 31st, to pay all monies due by December 1st of this year.
Them's the facts, from GLA's filings at the SEC, available at www.sec.gov. Search the EDGAR data base for filings by Great Lakes Aviation.
Speculation: They have a deal pending, or they wouldn't do this with such short time-lines. The contrarian analysis says they're just buying a little more time, and hope for a Hail-Mary 6th Amendment. This would seem unlikely, unless the lenders see light at the end of the tunnel. The lenders have been patient, all the while milking GLA for additional monies & fees.
These filings say nothing about the shape of a re-born GLA, old vs new executives, old vs new business plan, or the weather in Cheyenne WY.
This forbearance lasts until December 1, 2014 or until GLA commits additional breaches (pretty standard language). Their interest rate jumps another 2% per year, and they'll pay additional fees and expenses.
The big new news is the GLA has agreed to enter into a new funding agreement with a 3rd party (unspecified), NLT October 31st, to pay all monies due by December 1st of this year.
Them's the facts, from GLA's filings at the SEC, available at www.sec.gov. Search the EDGAR data base for filings by Great Lakes Aviation.
Speculation: They have a deal pending, or they wouldn't do this with such short time-lines. The contrarian analysis says they're just buying a little more time, and hope for a Hail-Mary 6th Amendment. This would seem unlikely, unless the lenders see light at the end of the tunnel. The lenders have been patient, all the while milking GLA for additional monies & fees.
These filings say nothing about the shape of a re-born GLA, old vs new executives, old vs new business plan, or the weather in Cheyenne WY.
