Document details

US airways

Author(s): Figueira, Milton

Date: 2018

Persistent ID: http://hdl.handle.net/10362/35359

Origin: Repositório Institucional da UNL

Subject(s): Costs of financial distress; Bankruptcy; Mergers and acquisitions; Deal financing; Domínio/Área Científica::Ciências Sociais::Economia e Gestão; Domínio/Área Científica::Ciências Sociais::Economia e Gestão; Domínio/Área Científica::Ciências Sociais::Economia e Gestão


Description

This case follows US Airways’ performance from inception to the potential merger with bankrupted American Airlines in 2012. Throughout the case, several events that endangered the existence of US Airways are brought into light. These events serve as basis to introduce the value of leverage and financial distress costs. Moreover, the case reflects on the decision between out-of-court restructuring and chapter 11, while assessing distressed mergers and acquisitions. Finally, the potential merger is analyzed and the proposed solution is that new equity should be split 69-31 per cent between American Airlines’ unsecured creditors and shareholders, and US Airways’ shareholders.

Document Type Master thesis
Language English
Advisor(s) Pinho, Paulo
Contributor(s) Figueira, Milton
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