It is just to bad that you "cannot fix stupid."
How about fixing USA320, who actually posted the following rebuttal to his own allegations! Whoever wrote the rebuttal to Snider (in caps) understands this whole situation so much better than the amatuer negotiator USA320!
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To: Bill Pollock
From: Kim Snider
Date: November 14, 2005
Re: Requested Analysis on Pre-and Post-Bankruptcy Filing Stock Values
Below are the financial calculations that establish the consequences of not accepting the Company offer of 19.33% of the Company stock and do not include the pilots receiving any of the value of the new US Airways attributed to the AWA stockholders. Our Investment Banker Michael Glanzer has reviewed these calculations.
OUR INVESTMENT BANKER MICHAEL GLANZER IS THE VERY SAME MICHAEL GLANZER THAT HAS AN ESTABLISHED RECORD OF PROVIDING HIS VERY INACCURATE, YET INCREDIBLY EXPENSIVE ASSUMPTIONS TO ALPA, APPARENTLY TO PROVIDE JUSTIFICATION FOR TAKING THE PATH OF LEAST RESISTANCE. AT NO TIME HAS MICHAEL GLANZER EVER BEEN A PROPONENT OF HOLDING MANAGEMENT ACCOUNTABLE. HIS VERY EXPENSIVE ADVICE ALWAYS PROMOTES CAPITULATION.
AS FOR THE ACCURACY OF HIS PREDICTIONS, UNTIL RECENTLY THE MEC BLINDLY ACCEPTED HIS WORD. WHEN HIS ADVICE WAS CHALLENGED LAST YEAR, IT WAS PROVEN TO BE INCREDIBLY INACCURATE. HIS STATEMENTS THAT THE COMPANY WOULD LIQUIDATE WITHIN A WEEK IF IT ENTERED CHAPTER 11 WITHOUT A PILOT AGREEMENT WERE PROVEN FALSE. THEY DID NOT LIQUIDATE, MR. GLANZER. HIS STATEMENT THAT NO ONE WOULD INVEST IN A "CIVIL WAR," REFERENCING A DIVIDE IN THE PILOT'S UNION, WAS ALSO PROVEN FALSE. THE IAM AND AFA WERE THREATENING TO STRIKE, YET INVESTMENTS CAME FORTH IN LATE 2004. OUR INVESTMENT BANKER MICHAEL GLANZER ACTUALLY TRIED TO CAMOUFLAGE HIS INACCURATE GUESS WITH THE STATEMENT THAT THE INVESTMENT COMMUNITY ONLY LOOKS AT THE PILOT'S UNION, NOT ALL OF LABOR.
PLEASE REMEMBER HOW ACCURATE MR. GLANZER'S VERY EXPENSIVE ADVICE HAS BEEN AS YOU READ THE REST OF THIS LITTLE PIECE OF KIM SNIDER'S MENDACITY.
The loss of stock caused by rejecting the Company's offer, prior to bankruptcy, of 19.33% of the stock has turned out to be much greater than it originally appeared.
HE CONVENIENTLY FAILS TO MENTION JUST HOW MUCH STOCK ALPA IS ACTUALLY RECEIVING NOW! ALPA WILL BE RECEIVING LESS STOCK THAN LOA 93 CALLS FOR! BUT BILL POLLOCK AND KIM SNIDER QUIETLY FAIL TO BRING THIS TO THE PILOT'S ATTENTION. WE HAVE ALREADY BEEN HAD, AND WHAT ARE POLLOCK AND SNIDER DOING ABOUT IT? NOTHING!
THE SEPTEMBER 6TH PROPOSAL CALLED FOR "REASONABLE EFFORTS TO PROVIDE
THE PILOTS A SHARE OF THE FULLY DILUTED COMMON STOCK EQUITY OF THE COMPANY NO LESS THAN 19.33%" THIS IS AKIN TO A BELIEF THAT ACCEPTANCE OF THE SEPTEMBER 6TH PROPOSAL (OR THE AUGUST 25TH PROPOSAL THAT WAS UNANIMOUSLY REJECTED BY THE MEC) WOULD HAVE ENSURED A FLEET OF 279 AIRCRAFT EVEN AS THE 279 NUMBER WAS REMOVED FROM THE AFA AND IAM AGREEMENTS.
NOTICEABLY MISSING FROM THIS DISCUSSION IS A DELINEATION OF TYPES OF STOCK. LOA 84 GAVE ALPA 19.33% OF THE CLASS A COMMON STOCK OF US AIRWAYS. THIS WAS NOT 19.33% OF THE TOTAL EQUITY OF US AIRWAYS. MANAGEMENT AND RSA HELD THE MAJORITY OF THE EQUITY IN PREFERRED STOCK.
THIS IS TYPICAL OF THE MIS-INFORMATION CAMPAIGNS OF BILL POLLOCK AND HIS TWO PARTNERS, KIM SNIDER AND JACK STEPHAN.
This is due to several factors beyond the obvious reduction from 19.33% to 8.5% of Company stock to be provided the pilots of US Airways under the Transformation Agreement:
HOW ABOUT THE REDUCTION FROM 8.5% TO LESS THAN 4.25% BY THE PLAN OF REORGANIZATION, MR. SNIDER? THIS IS A PUBLIC DOCUMENT! BEFORE THE VOTE TO ACCEPT PROFIT SHARING! AND IT REFERS TO JUST COMMON STOCK, NOT ALL COMPANY STOCK.
THERE IS PREFERRED, CLASS A COMMON, CLASS B COMMON, AND COMMON STOCK. SURELY KIM SNIDER AND MICHAEL GLANZER UNDERSTAND THIS. WHY DO THEY FAIL TO DISCUSS IT?
ALL ALPA EQUITY, INDEED ANYTHING CONTRACTUAL, WAS THERE FOR THE TAKING WHILE IN BANKRUPTCY; WITNESS MR. PARKER'S COMMENTS ABOUT THE ABILITY TO RIGHT-SIZE OUR FLEET DURING BANKRUPTCY, AND BILL POLLOCK'S VOTE TO ACCEPT THE REDUCED PROFIT SHARING AND BY EXTENSION, THE REDUCED STOCK ALLOCATION AT JERRY GLASS'S INSISTENCE.
No stock offset was required prior to bankruptcy for full profit sharing verses a 50% stock reduction after bankruptcy (reducing the 8.5% to 4.25%).
THE PLAN OF REORGANIZATION PROVIDED FOR LESS THAN 4.25% OF COMMON EQUITY TO BE DISTRIBUTED TO ALPA! WHETHER OR NOT ALPA ACCEPTED PROFIT SHARING!
AMAZINGLY, KIM SNIDER OMITS ANY DISCUSSION OF BILL POLLOCK CASTING THE TIE-BREAKING VOTE TO GIVE IN TO JERRY GLASS'S DEMANDS AND REDUCE THE AMOUNT OF THE PILOT'S PROFIT SHARING. THIS ALONE COLORS THE ACCURACY OF THE REST OF THIS POLITICALLY-BASED ASSUMPTION.
THE OFFSET WAS WELCOMED AND ENCOURAGED BY KIM SNIDER, BILL POLLOCK, AND THEIR SUPPORTERS THAT WANTED THE MEC TO "LET MY DADDY VOTE."
The 19.33% of Company stock due under the terms prior to bankruptcy would not have been reduced by equity investments greater than $250 million.
BUT KIM SNIDER OMITS THE FACT THAT THE 19.33% OF COMMON STOCK ALPA RECEIVED FROM RESTRUCTURING II WAS INDEED REDUCED BY ONE-FOURTH DUE TO FORFEITURE OF THE THIRD VESTING DUE TO CANCELLATION OF STOCK ON EMERGENCE FROM BANKRUPTCY, AND WAS ALMOST REDUCED TO ONE-HALF DUE TO BILL POLLOCK'S AND KIM SNIDER'S INACTION IN THE FACE OF JERRY GLASS'S DEMAND THAT ALPA DELAY THE SECOND VESTING OF STOCK UNTIL OUT OF BANKRUPTCY.
THE COMPANY OPENLY RENEGED ON THE CONTRACTUAL PROVISION FOR EQUITY IN LOA 93! WE ARE NOT RECEIVING ALL THE STOCK LOA 93 CALLS FOR! IT SEEMS THAT KIM SNIDER AND BILL POLLOCK WANT YOU TO BELIEVE THAT, EVEN THOUGH THE COMPANY RENEGED ON THE EQUITY PROVISIONS OF LOA 93, THEY WOULD NOT HAVE RENEGED ON AN EARLIER PROPOSAL CALLING FOR AN EVEN GREATER SHARE.
DO THEY ALSO BELIEVE ALPA WOULD HAVE FORCED US AIRWAYS TO MAINTAIN A 279 AIRCRAFT FLEET?
Under the terms of the Transformation Plan Agreement (LOA #93), the US Airways pilots are to receive 1.25 million shares of stock. This amount was arrived at because the 8.5% was reduced to 4.25% to offset "full" profit sharing (as allowed in LOA #93).
NO, KIM SNIDER, THIS IS YET ANOTHER LIE. THE AMOUNT OF STOCK ALPA WILL RECEIVE WAS REDUCED BECAUSE MANAGEMENT RENEGED ON THE PROVISION OF THE FULL AMOUNT OF STOCK DELINEATED IN LOA 93. THEY TOLD ALPA THAT THEY WOULD LOSE OTHER INVESTORS IF ALPA DEMANDED THE FULL CONTRACTUALLY REQUIRED AMOUNT OF STOCK. THEY KNOW ALPA WILL NOT FIGHT, SO THEY JUST ASKED THE BANKRUPTCY JUDGE TO TAKE OUR STOCK.
Also, under the terms of LOA #93, pilots only receive stock based on a percentage of the first $250 million of new equity plus the $115 million pre-investment value of US Airways. $250 m + $115 m = $365 m. $365 m times 4.25% = $15.5 million value at $15/share. LOA #93 also called for the US Airways pilots' equity to match US Airways management's equity. This provision would not hold up with
the Bankruptcy Judge because management could claim (and did claim) that almost all of the equity going to management was going to America West management and almost none was going to US Airways management.
KIM SNIDER SHOWS HE CAN ACCEPT THAT CERTAIN PROVISIONS OF LOA 93 DID NOT SURVIVE MANAGEMENT'S ATTACKS DURING BANKRUPTCY, YET HE STILL MAINTAINS THAT A PRE-BANKRUPTCY AGREEMENT WOULD EMERGE UNSCATHED!
THE BS METER IS IN THE RED!
So what would the US Airways pilots' equity claim be under the pre-bankruptcy offer?
MORE CONJECTURE, MAYBE WE SHOULD ASK, "WHAT WOULD THE US AIRWAYS PILOTS' EQUITY CLAIM BE UNDER LOA 93 IF MANAGEMENT DID NOT REDUCE OUR AMOUNT OF STOCK WHILE ALPA STOOD IDLY BY?"
Since prior to bankruptcy the equity was not limited to just the first $250 million of new equity, the numbers add up like this. The entire $565 million of new equity would have been added to the $115 million pre-investment value and multiplied by the full 19.33% (equity % unreduced for profit sharing).
BUT ONLY IF THE COMPANY DID NOT 1113 ALPA. IT APPEARS KIM SNIDER BELIEVES THAT EVERYTHING ELSE THE COMPANY DEMANDED OR TOOK SINCE THEN WAS ABSOLUTELY NECESSARY FOR THEIR SURVIVAL, SUCH AS THE VM/DH DEBACLE.
$565 m + $115 m = $680 m. $680 m times 19.33% = $131.44 million value at $15/share. This, however, does not reflect the full loss of stock value suffered by the US Airways pilots. As the $131.44 million was based on $15 per share, the pre-bankruptcy pilots stock would have been 8.763 million shares. At the present stock price of $33 (as of November 10) those 8.763 million shares would have been worth $289 million: $33 times 8.763 m shares = $289 million.
At the present stock price of $33, our 1.25 million shares are worth $41.25 million: $33 times 1.25 m shares = $41.25 million.
A loss of $247.75 million (289 m ï¿∏41.25 m) of value plus another $7.5+ million additional dollars of value lost for each additional dollar the stock price goes up!
That comes out to $82,583 of stock value lost for each of our 3,000 pilots.
APPARENTLY BILL POLLOCK AND KIM SNIDER BURNED A LOT OF THE MIDNIGHT OIL COMING TO THIS DISINGENUOUS CONCLUSION!
THIS IS DISHONESTY, PURE AND SIMPLE, FROM THE VERY SAME MAN THAT RULED THAT THE PILOTS WOULD NEVER GET A CHANCE TO VOTE ON THE TERMINATION OF THEIR PENSIONS. THE AVERAGE PILOT, AFTER 25 YEARS OF SERVICE WOULD HAVE RETIRED WITH A LUMP SUM WELL IN EXCESS OF $1,000,000, AND IN SOME CASES, IN EXCESS OF $2,000,000. THAT'S RIGHT; BILL POLLOCK ENSURED THAT EVERY PILOT WOULD HAVE THEIR EARNED RETIREMENT STRIPPED FROM THEM. TO BUY EMB-170'S NO LESS! HE PERSONALLY RULED THAT THE PILOTS' ONLY DEFENSE AGAINST THIS LARCENY, THE ABILITY TO VOTE, WOULD BE TAKEN AWAY FROM THEM. THE POTENTIALLY SEISMIC REPERCUSSIONS FROM THIS ACTION BY POLLOCK ARE JUST NOW BEGINNING TO BE FELT BY OUR ASSOCIATION.
DO NOT FORGET THAT THE SEPTEMBER 6TH COMPANY PROPOSAL THAT POLLOCK AND SNIDER PUSHED SO HARD FOR CONTAINED A 23% PAYCUT. EVEN THE BANKRUPTCY JUDGE THOUGHT THAT WAS WAY TOO HIGH, HE REDUCED IT IN HIS 1113E RULINGS FOR THE OTHER LABOR GROUPS. THE AVERAGE PILOT, NOW FLYING 95 HOURS PER MONTH, WOULD HAVE ON AVERAGE LOST MORE THAN AN ADDITIONAL $7,500 EACH YEAR IN PAY ALONE. ADD IN WHAT THAT WOULD DO TO DC CONTRIBUTIONS, AND YOU GET A CLEAR PICTURE OF THE BS POLLOCK AND SNIDER CONTINUE TO PUSH ON THE PILOT GROUP.
ALSO, DO NOT FORGET TO ADD IN THE PAY PARITY THAT KIM SNIDER SO QUICKLY AND EASILY OFFERED TO GIVE AWAY DURING THE AMERICA WEST TRANSITION NEGOTIATIONS, AND THE PILOTS HAVE LOST EVEN MORE AT THE HANDS OF THESE "LEADERS!"
IF YOU COMPARE PAY (A DEFINITE) WITH THIS STOCK HALLUCINATION, YOU GET A CLEAR PICTURE OF THE CONTINUING MIS-INFORMATION CAMPAIGN OF BILL POLLOCK AND KIM SNIDER.
JUST HOW MUCH DID YOU MAKE FROM THE 19.33% EQUITY SHARE ALPA RECEIVED FROM RESTRUCTURING II IN 2002? REMEMBER, BOTH POLLOCK AND SNIDER WERE WILLING TO ACQUIESCE TO GLASS'S DEMAND THAT THE PILOTS GIVE UP THE SECOND VESTING, A FULL 25% OF ALPA'S SHARE OF COMMON STOCK, IN DECEMBER 2004. AND DO NOT FORGET THE FACT THAT THE PILOTS LOST THE LAST VESTING OF STOCK FROM RESTRUCTURING II, YET ANOTHER 25%.
WITH THIS HISTORY IN MIND, AND ESPECIALLY THE LANGUAGE CONTAINED IN THE SEPTEMBER 6TH PROPOSAL, IS THERE ANY PILOT AT US AIRWAYS NAIVE ENOUGH TO BELIEVE THAT ANY OF THE COVETED SEPTEMBER 6TH AGREEMENT WOULD HAVE SURVIVED CHAPTER 11? JUST LOOK AT HOW MUCH OF LOA 93 HAS BEEN DISREGARDED BY JERRY GLASS WITH THE TACIT APPROVAL (OR OUTRIGHT ASSISTANCE VM/DH GRIEVANCE DELAY OF SIX MONTHS) OF CHAIRMAN POLLOCK.
Another unfortunate piece to this issue is that 70% of the stock that we lost in this process went to the PBGC, with the rest going to the other unsecured creditors.
THIS IS CREATING HISTORY THAT NEVER TRANSPIRED. WE WERE NEVER GUARANTEED ANY STOCK. WE WERE OFFERED ONLY "REASONABLE EFFORTS TO PROVIDE..."
The PBGC, with most of that windfall, increased the funding for the IAM and AFA pension participants who lost their pensions in this bankruptcy.
THIS WAS DUE TO THE BANKRUPTCY JUDGE'S RULING. REMEMBER THE SEPTEMBER 6TH PROPOSAL'S LANGUAGE - "SUBJECT TO BANKRUPTCY COURT APPROVAL."
HOW IRONIC THAT MOST OF THE STOCK WE LOST OUT ON IN THIS PROCESS IS BEING USED TO FUND OTHER EMPLOYEE GROUPS' PENSIONS.
MORE IRONY... IT IS THE VERY SAME MEN THAT VOTED AWAY YOUR PENSION WITHOUT YOUR HAVING ANY SAY IN THE MATTER HAVE THE NERVE TO EVEN MENTION THE WORD "PENSIONS!"
These stock shares are in addition to the 1.1 million shares of stock options or more that would still be required to make up for the diluting affect of management's stock, as our stock values are to be on a fully diluted basis.
FULLY DILUTED COMMON EQUITY, NOT PREFERRED EQUITY. THIS LITTLE DETAIL IS HIDDEN IN LOA 93. KIM SNIDER AND BILL POLLOCK HOPE YOU WILL NOT FIND IT.
The increased stock that the US Airways pilots would have received if the Company offer of 19.33% had been accepted would have resulted in a reduction in the stock distribution to the PBGC and other unsecured creditors, and would not have affected the new equity investors.
THIS PEGS THE BS METER. THIS IS MERE SUPPOSITION BY KIM SNIDER AND BILL POLLOCK. THERE IS NO EVIDENCE TO PROVE THAT THIS WOULD HAVE HAPPENED.
LOA 93 STATES THAT "NOTHING IN THIS AGREEMENT SHALL PREVENT ANY OTHER PARTY IN INTEREST FROM OBJECTING TO ANY ASPECT OF ANY PLAN OF REORGANIZATION..."
THE PBGC WOULD GET THEIR MONEY, FROM ONE SOURCE OR ANOTHER. BUT THE PILOT'S STOCK IS THE EASIEST SUPPLY OF CASH.
THE DECEPTION CONTINUES:
In other words, the new investors would not have had a basis to object to the increased stock distribution to the pilots since that increase would have come at the expense of the PBGC and other unsecured creditors, similar to the pilot allocation of 19.33% of all Company stock in our first bankruptcy.
LOA 93 STATES THAT "NOTHING IN THIS AGREEMENT SHALL PREVENT ANY OTHER PARTY IN INTEREST FROM OBJECTING TO ANY ASPECT OF ANY PLAN OF REORGANIZATION..."
SEPTEMBER 6TH COMPANY PROPOSAL: 23% PAY REDUCTIONS; GROUP 2 CAPTAINS DOWN TO $117/HR. - $9000 ANNUAL LOSS OF INCOME.
AWA TRANSITION AGREEMENT: KIM SNIDER GIVES AWAY PAY PARITY OFFERED TO US AIRWAYS PILOTS (WHILE AWA PILOTS GET RETIREMENT PARITY) - $8000 ANNUAL LOSS OF INCOME.
DEFINED BENEFIT PLAN: DESPITE BILL POLLOCK'S INSISTENCE THAT DAVE SIEGEL WILL MAKE US WHOLE 60% OF LAST THREE YEARS' PAY LOST FOR YOUR ENTIRE RETIREMENT.
THESE MEN HAVE COST YOU PLENTY OF MONEY, AND THEY CONTINUE TO ALLOW THE COMPANY TO PILFER YOUR QUALITY OF LIFE.
COULD THIS EXERCISE BE JUST A SMOKE SCREEN TO DISTRACT YOU FROM THE UPCOMING LOSS OF YOUR SENIORITY?
WHAT WAS PROMISED TO WHOM?
FELLOW PILOTS,
WE WORK UNDER LOA 93 BECAUSE THIS PILOT GROUP RATIFIED IT. HOWEVER WE NEED TO KEEP THE TARGET IN OUR SIGHTS: THE JNC AND A DECENT CONTRACT, AND A DATE OF HIRE MERGED SENIORITY LIST.
