BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
- Banned
- #61
Plan of ReOrganization - the detailed financial forecast that the debtor presents to the court and Unsecured Creditor's Committee that shows how the debtor proposes to restructure and financially perform for a number of years following bankruptcy exit. For example, US' POR for BK2 was a few hundred pages long and included the details about the deals with equity investors, AWA shareholders, change in the company structure, changes in the corporate charter/BOD, the merger details, financial projections for I think 7 years following bankruptcy exit, what each class of unsecured creditors would get per dollar owed them, voting procedures for the vote of the actual unsecured creditors, details about the various employee contracts, and a host of other information.
The impressions I have is that Parker doesn't have a fully developed POR for a merger with AA, but rather bullet points outlining what he proposes and hopes the merger will produce. Right now he wants to convince members of the UCC that they should press AA management to accept a merger with US and is not putting out a detailed POR showing how he proposes to achieve what he claims can be achieved. Thus the offers to the AA unions only outlining a framework for potential contracts. Over on the AA forum I'm reading that the line pilots are starting to ask questions about the specifics that the APA doesn't have answers to, and aren't too happy about that. There's even a rumor that the APA ruling body (i.e., MEC or BPR equivalent) may pass a TA without putting it out for pilot ratification.
Jim
PS - in my post you quoted I thought I corrected my typo but I guess not. The first sentence should be "that wasn't in bankruptcy" instead of "that was in bankruptcy". Every merger Parker proposed was with a company in bankruptcy, allowing him to use the other carrier's bankruptcy to dump planes/facilities/contracts he didn't want and the merger would be part of the POR and accomplished in conjunction with the other carrier exiting bankruptcy.
The impressions I have is that Parker doesn't have a fully developed POR for a merger with AA, but rather bullet points outlining what he proposes and hopes the merger will produce. Right now he wants to convince members of the UCC that they should press AA management to accept a merger with US and is not putting out a detailed POR showing how he proposes to achieve what he claims can be achieved. Thus the offers to the AA unions only outlining a framework for potential contracts. Over on the AA forum I'm reading that the line pilots are starting to ask questions about the specifics that the APA doesn't have answers to, and aren't too happy about that. There's even a rumor that the APA ruling body (i.e., MEC or BPR equivalent) may pass a TA without putting it out for pilot ratification.
Jim
PS - in my post you quoted I thought I corrected my typo but I guess not. The first sentence should be "that wasn't in bankruptcy" instead of "that was in bankruptcy". Every merger Parker proposed was with a company in bankruptcy, allowing him to use the other carrier's bankruptcy to dump planes/facilities/contracts he didn't want and the merger would be part of the POR and accomplished in conjunction with the other carrier exiting bankruptcy.
