BALLS of STEEL check in

[TWU informer]

The AFW meeting should be next on the tour, I'll get with our prez and see where we stand.

ROFL.
That statement sums up the TWU alright.
Shouldn't your comment really read that the members are telling your President where we stand?
LOL think about it.

 

[FrequentFlierCA]

I've been expecting a pre-packaged bankruptcy for some time. $5B in the bank with the credit markets the way they are might not be such a bad idea.

And if enough of the secured creditors and debtors see the possibility to be made more or less whole under a new cost structure?...

Could be interesting, indeed.

I'm not so sure about that pre-packaged bankruptcy idea. They just raised another billion.

 

[odie01]

ROFL.
That statement sums up the TWU alright.
Shouldn't your comment really read that the members are telling your President where we stand?
LOL think about it.

Oh I know what I said, that's why I'm going to ask him. Assbackwards, isn't it?

 

[TIME FOR CHANGE]

What if though?

What IF the AA position is the Pilot Sacred Cow Pension was funded and kept in place for the last 8 years by TWU Concessions?

And now the TWU members have had enough and are ready to take a stand?

AA is ready to allow TWU to take a stand and be the blame for the BK filing that eliminates the Sacred Cow Pilot Pensions?

Not only is this very plausible AA conduct, this is actually a viable scenario that could be taking place right before eyes.
You might think the battle is the AMT profession, I think the battle is the Pilot Sacred Cow Pension liability.

But that is just my opinion. Prepare to suffer a small but intimidating sacrfice, to only be the scape goat of AA's intention to shaft the Pilots.
Then watch the Pilots burn the barn, and your suffering will be greater.

Anyone who thinks this scenario is just talk or not possible, doesn't know AA Management very well, even after all these years of dealing with them.

Don't be foolish and bury your head in the sand just because emotions are running at an all time high within the AMT group.

So not only are we subsidizing the high cost of fuel, low ticket prices, and management screwups,
we are also subsidizing the piloits pension ? ?

all the more reason to be released. I am no longer willing to subsidize. 😉

 

[eolesen]

I'm not so sure about that pre-packaged bankruptcy idea. They just raised another billion.

Per the 10-K, that $1B is already spoken for as part of upcoming debt & capital spending:

http://investing.businessweek.com/research/stocks/financials/drawFiling.asp?docKey=136-000095012311014726-4B33AA1ITMS5HODHQ6TLS5MJ2S&docFormat=HTM&formType=10-K

In 2011, AMR will be required to make about $2.5 billion in principal payments on long-term debt and capital leases, $1.6 billion in capital expenditures including aircraft, and $520 million in contributions to pension plans, according to the annual report.

 

[Birdman]

There will be no panic attacks over BK as many will just say "go for it". What are the chances of an airline filing on the eave of its most profitable quarters anyway? The real concern is fuel prices coming down, travel demand going up, and a/c yields expiring at an alarming rate. Still no noticeable plan to recover maintenance schedule shortcomings as manAAgement just holds its breath hoping the exposed melting fuel rods will just cool on their own.

 

[FWAAA]

I'm not so sure about that pre-packaged bankruptcy idea. They just raised another billion.

It's a common misconception that corporations can't be a debtor and file a petition for bankruptcy protection unless they're out of cash. Nothing could be further from the truth. Wouldn't matter if AA went out and borrowed $10 billion; §109 of the Bankruptcy Code doesn't restrict cash-flush corporations from filing.

My prediction is that AMR files a petition sometime during 2011 or 2012.

 

[Birdman]

My prediction is that AMR files a petition sometime during 2011 or 2012.

My prediction is they won't.

 

[700UW]

There is noting in the code that says they have to be of cash to file US had $900 million in the bank when they filed the second time.

Your liabilities have to outweigh your assets.

Companies that have been solvent filed because of huge lawsuits going to be filed, ie John Mansville.

When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11.

In Chapter 7 the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court.

Features of Chapter 11 reorganization

Chapter 11 retains many of the features present in all, or most, bankruptcy proceedings in the U.S. It provides additional tools for debtors as well. Most importantly, 11 U.S.C. § 1108 empowers the trustee to operate the debtor's business. In Chapter 11, unless a separate trustee is appointed for cause, the debtor, as debtor in possession, acts as trustee of the business.

Chapter 11 affords the debtor in possession a number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on the business' earnings. The court may also permit the debtor in possession to reject and cancel contracts. Debtors are also protected from other litigation against the business through the imposition of an automatic stay. While the automatic stay is in place, most litigation against the debtor is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue.

If the business's debts exceed its assets, the bankruptcy restructuring results in the company's owners being left with nothing; instead, the owners' rights and interests are ended and the company's creditors are left with ownership of the newly reorganized company.

All creditors are entitled to be heard by the court.[citation needed] The court is ultimately responsible for determining whether the proposed plan of reorganization complies with the bankruptcy law.

One controversy that has broken out in bankruptcy courts since 2007 concerns the proper amount of disclosure that the court and other parties are entitled to receive from the members of the ad hoc creditor's committees that play a large role in many such proceedings