BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
- Banned
- #31
My point was not that the court will take from the groups that ratified but upon abrogation it will not allow M&R/Stores to receive less..
That's the law in at least the 2nd Circuit, established by the Appeals Court in the Frontier bankruptcy. Each group has a chance to negotiate different concessions instead of the term sheets - think of it as Joe Blow asking if you want to share the cost of a lottery ticket and you decline so Joe buys one without you and wins...you don't get to claim part of Joe's winnings.
However, like I said before, I suspect that AA will be able to say that those who ratified concessions are giving up close enough to the same as those who didn't to withstand the "equal treatment" standard because it doesn't require equal concessions to the penny. Just look at the negotiations going on over lease/EETC rates on planes - those agreements are filed under seal as they're reached so those that are being negotiated with don't know how much others agreed to (or turned down). So it will easily result in one plane's lease/EETC rates being less than another's - where's the equality in that? The equality comes in being equally able to negotiate.
Jim