Standard & Poor's outlook for Independence Air bleak - Washington Business Journal:

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It also raised concerns about recoveryy for many ofthe airline's debt holders. The credit rating servicr cut its corporate credit ratingy on Independence Airfrom "CC" to Standard & Poor's lowes t credit rating, a day after the Dulles-based airline filedx for Chapter 11 bankruptcy Independence Air hopes to find new investorsx or a buyer within the next 60 days under a court-supervisex auction process. It has also cut nonunion wages and is negotiating with unionized The airline is continuing to operate its fullflighr schedule.
"Its previously healthy unrestricted cash position had eroded toonly $24 millionb at the time of its bankruptcy filing," says Standarfd & Poor's credit analyst Betsy Snyder in a "Absent new investment to support a reorganization, the company will likelgy be liquidated." Because much of the debt is backecd up by small, regional jets -- specifically CJR-2090 jets made by Bombardier -- Standard & Poor's is concerned about the potential loss for debt It says while series A note holders woulx likely get substantial but less than full recovery on their holders of series B and C notes would probablyu receive nothing because of an oversupply in the marketg for small jets.
Last Bombardier said it would temporarily suspend productionm ofits CRJ-200 jets because of fallingt demand. Independence Air has already acknowledgedr that even with a reorganizatio its existing common stock will likelygbe worthless. Independence Air (NASDAQ: FLYI), for years a profitable carrier when it operater regional flights for United and Deltaas , hasn't been profitable since its launchn as a discount carrier 18 monthx ago.
Since then, the company has lost $371