Discovery Air Rescued

[just looking]

Well lets see, money borrowed to carry on an existing loan with a two year term,,,,why is that considered a bailout? As far as a good sign, well if people have done their homework and feel that loaning them 34 million then they are confident that they will get their money back thus think things will turn around. They have proven in time to be an honorable company who treats their employees and customers with respect so why not think is a good thing.

 

 

 

You are kidding right. This is a publicly trading company with access to public funds and banks. There 33,000,000.00 is due next month and they can't raise the funds on the public market and bank's won't give them the money.

 

So what you are saying is the GNWT has looked into this and is wiser then investors and banks.

 

What is the GNWT going to due when Canadian North and First air line up for money. hey are getting their ***'s handed to them right now as well.

 

 

 

[skullcap]

I agree with this reply in another forum I read:

 

 

I didn't post anything in another forum,,,

 

And maybe you haven't tried to borrow money lately, there is a huge issue with banks not lending money to the extent government is stepping in.

 

Your tax dollars are better spent doing what? Providing subsistance to a bunch of out of work people? But the cup is half empty in a lot places these days and with people losing jobs, or even careers it is hard not to, so am looking up a bit.

[Bar C]

I didn't post anything in another forum,,,

 

And maybe you haven't tried to borrow money lately, there is a huge issue with banks not lending money to the extent government is stepping in.

 

Your tax dollars are better spent doing what? Providing subsistance to a bunch of out of work people? But the cup is half empty in a lot places these days and with people losing jobs, or even careers it is hard not to, so am looking up a bit.

 

RFTQ 2wice

 

"i agree with this reply in ANOTHER forum I read" where does it say that you made the reply, have another coffee

[just looking]

RFTQ 2wice

 

"i agree with this reply in ANOTHER forum I read" where does it say that you made the reply, have another coffee

 

 

So you both beleive that helping Discovery is better then providing for people out of work. Thats BOLD

 

Yes i have tried borrowing money and banks have no issue with stable business plans and profitable stable companies. So what does this say about DA. I thought they were buying up profitable stable companies in a NICHE market. **** why doesn't the Canadian government bail them out they bought flying aces to support the Canadian government military.

 

I have no issue with this as long as the GNWT bails everyone out that does not have access to the public stock market first. Again obviously the stock market don't think much about there business plan. You didn't see the B.C government bail out Northern mountain years ago.

[Bar C]

So you both beleive that helping Discovery is better then providing for people out of work. Thats BOLD

 

Yes i have tried borrowing money and banks have no issue with stable business plans and profitable stable companies. So what does this say about DA. I thought they were buying up profitable stable companies in a NICHE market. **** why doesn't the Canadian government bail them out they bought flying aces to support the Canadian government military.

 

I have no issue with this as long as the GNWT bails everyone out that does not have access to the public stock market first. Again obviously the stock market don't think much about there business plan. You didn't see the B.C government bail out Northern mountain years ago.

 

Sorry no I don't agree with bailing them out I just meant to straighten out the skull's skull:(

 

[vortex]

I imagine it will be challenging to repay debt created when the fleet was around 20% larger than what they will be operating in 2009. But hey, the interest rate is only 10% so it shouldn't take long :shock:

[2007]

 

"Your tax dollars are better spent doing what? Providing subsistance to a bunch of out of work people? But the cup is half empty in a lot places these days and with people losing jobs, or even careers it is hard not to, so am looking up a bit."

 

 

I kind of thought the governments role was to look after the weak in society by providing subsistence to out of work people. Perhaps Discovery should declare bankruptcy now and renegotiate some of it's debt rather than wait 2 years and perform the same function after defaulting on it's loan with the NWT Government.

 

Call it what it is -a lifeline or a bailout - it is a shame because there a good people there.

Management though is obviously another issue.

[skullcap]

Well I can see this going to go the same way as other threads lately, you guys would rather them go bankrupt then,,,,that would do a whole lot of good.

 

Yes it is bold to think that it is better to keep companies operating, with a loan, then to watch them go south and paying for welfare or ei.

 

Stock market has very little good to say about anyone these days, that seems to a problem for more than just a few companies.

 

 

Am done, going to have another coffee

[Bar C]

Well I can see this going to go the same way as other threads lately, you guys would rather them go bankrupt then,,,,that would do a whole lot of good.

 

Yes it is bold to think that it is better to keep companies operating, with a loan, then to watch them go south and paying for welfare or ei.

 

Stock market has very little good to say about anyone these days, that seems to a problem for more than just a few companies.

 

 

Am done, going to have another coffee

 

I don't think the stock market ever had anything good to say about this outfit, and

 

2007 has a very good point great people work there, but it sure is obvious the wrong ones are "managing" a few of them should be just ejected, but there are a few that are worth re training, they seem to forget once there pockets get heavy with all that ego.

[Icewind]

Some strange ideas and assumptions floating through this thread!

 

From what is in the news report, this is a refinancing of a debt that comes due February 1. I would be very surprised if the company didn't shop around for the best deal. Don't you shop around when your mortgage comes up for renewal? What is interesting here are the terms set by the Northwest Territories Opportunities Fund (whose business is probably to seek out businesses to invest in) 10% per year. I wonder what the major financial institutions wanted for terms? And their level of debt increases by 3%. If you read the financial details, the operation is still generating revenue and showing a 3rd quarter profit !!

 

There is an associated agreement that Discovery Air moves it's HQ to Yellowknife - probably not a bad move from the NWT point of view.

 

Calling this a bailout at this point is a misuse of the term.