Bankruptcy Ii

[tug_slug]

That is my biggest fear. We can get rid of 1 Dave maybe, but we will never be rid of both until we are history.

Personally I believe its over. After all these years of hearing the analyst's predict the demise of US Airways I think that their predication will finally come true.

I would like to personally thank Dr Bronner for his accomplishments. He has done what no one else has been able to do. He brought down a great airline and put 40,000 plus individuals out of a job (or is at least working on it).

One last question to the good Doctor. Are you happy now?

 

[700UW]

To Fatherknowsbest,

US Airways does not owe any money to Dr Bronner and the RSA. Therefore there is no pulling the plug. RSA lent US Airways the DIP financing and it was all paid back when the ATSB loan was recieved.

RSA then invested (bought stock) $240 million for a 37% stake of the stock, stock is not a loan, so US does not owe RSA a penny. So if the company was to liquidate the RSA's investment would suffer the same fate as the owners of US Airways' stock prebankrupcty, they would get nothing as stock holders are unsecured creditors, therefore there is no financial gain to the RSA if US Airways was to file chapter 7.

 

[767jetz]

So if the company was to liquidate the RSA's investment would suffer the same fate as the owners of US Airways' stock prebankrupcty, they would get nothing as stock holders are unsecured creditors,

I don't tink this statement is 100% accurate. I believe there are different levels of risk involved with being a shareholder. My guess is that Bronner is at the top of the food chain, and would be one of the first compensated in a liquidation. Let's hope it doesn't come to that though.

Also, I believe Dave and Dave (and Rono and others) may be pushing very hard behind the scene for a transaction with United because they think liquidation could be a reality, and a back room transaction may be their best option to get out without liquidating and loosing their shirt.

6 months ago when UA was on shakier footing, prior to the slow recovery of the economy, this was probably an option considered by both sides. I believe this is what fueled the hopes of a certain poster. However the landscape has changed dramatically since then, and a transaction could only occur if both sides want it... or need it.

Either way, let's hope a liquidation is not in anyone's future.

Happy Thanksgiving to all!

 

[airlineorphan]

QUOTE (700UW @ Nov 27 2003, 10:36 AM)
So if the company was to liquidate the RSA's investment would suffer the same fate as the owners of US Airways' stock prebankrupcty, they would get nothing as stock holders are unsecured creditors,


I don't tink this statement is 100% accurate. I believe there are different levels of risk involved with being a shareholder. My guess is that Bronner is at the top of the food chain, and would be one of the first compensated in a liquidation. Let's hope it doesn't come to that though.

767jetz is correct. Dr. Bronner's investment of Alabama state employee pension money netted him control of some category of Preferred Stock. As with Napoleon the Pig in Animal Farm, some stock is more equal that other stock, and this is certainly the case with Preferred Stock (hence the name Preferred).

The rest of us commoners and rabble just get Common Stock which converts to a nice wallpaper when Chapter 11 is declared (or Chapter 7, for that matter).

Preferred Stock gets to cut ahead in line (ITRADE would know how far ahead in line) when the creditors queue up to get their carvings in a liquidation.

Mind you, in a Ch. 7, the pension fund Dr. Bronner is responsible for will be very unlikely to recoup all of its investment, but will get more than the rest of us riff raff.

Good luck to all of us (except the bandits in CCY).

in solidarity,
Airlineorphan

P.S. It has always seemed to me to be the height of fiduciary irresponsibility for the director of a pension fund to invest it in an airline under the current circumstances. If this goes south, I do hope the state employees in Alabama take this out of Dr. Bronner's hide!

 

[skyflyr69]

I look for UAL to buy U at a bargain basement price, Grab its key assets and throw the rest to the wind. Just like Continental did Eastern.

that would be a good way to get rid of the IAM and all the whiners. lets see where those 50+ yr.old employees will go.
to the soup lines for sure.

 

[AP Tech]

Unfortunately the IAM will not be the only ones tossed out, all the groups will be affected except the "corporate brains" who sit in CCY running the company into the ground. Those chosen few will float to the ground by their "golden chutes". So if you are not one of those be careful what you wish for............

 

[airlineorphan]

skyflyr69 wrote charitably on this Thanksgiving day:

lets see where those 50+ yr.old employees will go.
to the soup lines for sure.

Wow, skyflyr69,

You're all heart.

I hope you never find yourself down on your luck! Remember, there but for fortune go you.

You really should lay off the hard stuff before you get online. Take a nap. It'll do you some good.

-Airlineorphan

 

[Kev3188]

"that would be a good way to get rid of the IAM and all the whiners. lets see where those 50+ yr.old employees will go. "

----------------------------------------------------------------------------

You gotta love this guy. I wonder if he's aware that UAL (Ramp & CSA) are IAM as well? <_<

 

[RedOne]

lets see where those 50+ yr.old employees will go.
to the soup lines for sure.

Sky....Why the hostility towards this age group? Could it be because you are not yet in this age group, but wish you were? You apparently realize that if there are more cut-backs (not chapter 7) these decitated employees will remain while you as a less seasoned employee will (as you put it) seek the soup line. Let's hope there are no more cuts...period. As a 50+ yr old employee, I don't wish the soup line for anyone.