Change of Control, the New American Airlines and the PBGC

[usa1]

Please review what the PBGC stated in the BUF case when America West bought US Airways, it's linked above in this thread.

In this event:

1- There is no more US Airways or US Airways Group Inc.
2- There are no pension credits available to us with the new company, American Airlines Group Inc. All AMR pensions were frozen.

 

[kamchaser]

"Plan section 2.1 (M) of the Third Amendment to the CE Plan defines Employer as
US Airways, Inc., a Delaware corporation, its corporate successors, and the surviving
corporation resulting from any merger or consolidation of US Airways, Inc. with any
other corporation, and any other member of the controlled group of corporations which has adopted the Plan by appropriate written instrument executed pursuant to
the authority of its board of directors."

I think the snakes have got it covered. I hope not for all of you, but I think they shoved it up one last time.

 

[usa1]

I would like to get a historical timeline for all the "amendments". I guess they reserve the right to change the rules in the middle of the game? Someone needs to take it to court this time!

 

[usa1]

Investor, ownership and regulatory information​

Q. What will happen with the AMR Corporation stock and US Airways stock?
A. A new common stock will be issued for the combined company that will replace the current stock of US Airways and AMR when the merger, which is subject to certain approvals and closing conditions, is completed.
Under the terms of the merger agreement, US Airways shareholders will receive one share of common stock of the combined company for each share of their US Airways common stock.
As a result, US Airways shareholders will own 28 percent of the combined company. The remaining 72 percent ownership will be issuable to stakeholders of AMR and its subsidiaries that filed for reorganization under Chapter 11.
It is too early in the process to know how distributions will be made among the stakeholders of AMR. Existing shares of US Airways and of AMR will be cancelled.
Q. Will American Airlines still be a subsidiary of AMR after the merger approvals are granted?
A. AMR Corporation, American’s current parent, will be the parent holding company for the combined American and US Airways. We expect that immediately after the merger, AMR Corporation will change its name to American Airlines Group, Inc.
Q. What role does the European Union play in approving the merger?
A. The EU is among the regulatory authorities that will be asked to review the proposed merger.
Q. Which company is the buyer in this deal – AMR or US Airways?
A. The transaction is structured as a merger, not as the purchase by one company of the other. AMR and US Airways have an agreement to combine both companies. AMR Corporation, American’s current parent, will be the parent holding company for the combined American and US Airways. We expect that immediately after the merger, AMR Corporation will change its name to American Airlines Group Inc.
AMR and US Airways stakeholders will receive shares of the combined company’s new common stock, with 72 percent of the shares going to stakeholders of AMR and its subsidiaries that filed for reorganization under Chapter 11 and 28 percent going to US Airways shareholders.
Q. What will happen to AMR?
A. AMR Corporation, American’s current parent, will be the parent holding company for the combined American and US Airways. We expect that immediately after the merger, AMR Corporation will change its name to American Airlines Group Inc.

http://aviationblog....es-merger.html/

 

[usa1]

http://www.thestreet...uptcy-ever.html

Is the American Bankruptcy the Best Airline Bankruptcy Ever?

In the court process, at least one major issue remains unresolved: What happens to [background=transparent]retiree[/background] health claims? Currently, retirees pay nothing for health care. Paul Mazzara, a former TWA and American mechanic who is chairman of the American Airlines Retirees Committee, worries that future premiums for health care might be around $1,000 a month. "Most retirees don't make $1,000 a month," he said.

In ongoing talks, attorneys for the airline and the retirees are negotiating the outcome of the retiree health care claim. The airline intends for retirees to be placed in an insurance pool with future retirees, where they would benefit from a group discount, according to a person familiar with the negotiations. The retirees would likely pay a monthly premium in the hundreds of dollars; the coverage would not be subsidized by the airline. So far, attorneys for the retirees have rejected this resolution.

Besides becoming part of the insurance pool, retirees may receive some amount of value in recognition of their claim, which is valued at around $1.2 billion, the person said. The resolution is being negotiated: retirees could receive a future subsidy to their premiums or they could be awarded value in the near term, which would diminish the pool of [background=transparent]funds[/background] available to other creditors.

US Airways PBGC CE are getting nothing out of this? No more US Airways Group Inc or US Airways. We need to get our PBGC rolling and keep working in order to be able to retire someday.

If we are offered retire medical by the "NEW" company will the PGBC, HCTC option be taken away. Which plan would former US Airways employees get?

 

[supercruiser]

US Airways PBGC CE are getting nothing out of this? No more US Airways Group Inc or US Airways. We need to get our PBGC rolling and keep working in order to be able to retire someday.

If we are offered retire medical by the "NEW" company will the PGBC, HCTC option be taken away. Which plan would former US Airways employees get?

HCTC "is" scheduled to go away permanently at the end of this year on Dec 31. This has received little attention. Call them yourself if you want to hear it from them directly (IRS who administers this plan for the PBGC) The HCTC plans termination is to coincide with Obamacare going into effect Jan 1, 2014.

 

[Walmartgreeter]

I would like to get a historical timeline for all the "amendments". I guess they reserve the right to change the rules in the middle of the game? Someone needs to take it to court this time!

[font=Arial']Good luck. US Airways East pilots were insured by the PBGC with a "full" benefit promised at age 60. We lost our pensions, the flying age was changed to age 65 and..guess what..the PBGC indeed changed the rules "in the middle of the game" and made the "whole" age at 65. So guys that were forced to retire at 60 were suddenly given a benefit as if they had retired 5 years early.[/font]

[font=Arial']The Courts will not fix this, only Congress. A great argument is being made, with lots of lip service support given by the POLs to return the benefit to as promised on the policy. But current events hold little hope that "greedy pilots" will ever prevail.[/font]

[font=Arial']Again, good luck. It would be a boon to a lot of our folks if you can get any traction on the Change of Control. But like someone said already “the snakes have it covered."[/font]

[font=Arial']Greeter [/font]

 

[usa1]

HCTC "is" scheduled to go away permanently at the end of this year on Dec 31.

I heard that .... So that means we all work until age 65 or lose our healthcare. I guess we have to wait and see what the courts tell AAMRQ and see how the New American treats us?

 

[kamchaser]

You are correct about the HCTC. It has been extended in the past but with the sequester who knows. That is why everyone close to or are considering retirement should contact your Senators and Representatives, and press them to make the HCTC permanent for those whose retirement programs were frozen with health benefits till 65. Everything is a roll of the dice any more because they change the rules when ever they want. Fight them and resist as much as you can.
They dumped the pensions on the PBGC to slither out of their obligations, the least that should be done is the original agreement reinstated ( No changes). Once again make the HCTC permanent for those whose pensions were frozen.

 

[usa1]

You are correct about the HCTC. It has been extended in the past but with the sequester who knows. That is why everyone close to or are considering retirement should contact your Senators and Representatives, and press them to make the HCTC permanent for those whose retirement programs were frozen with health benefits till 65. Everything is a roll of the dice any more because they change the rules when ever they want. Fight them and resist as much as you can.
They dumped the pensions on the PBGC to slither out of their obligations, the least that should be done is the original agreement reinstated ( No changes). Once again make the HCTC permanent for those whose pensions were frozen.

+1

 

[usa1]

http://www.airlineforums.com/topic/54974-american-airlines-seeks-more-time-merged-threads/page__st__24#entry986189

 

[usa1]

Six US Airways executives receive $8.9 million in stock grants

http://aviationblog.dallasnews.com/2013/04/five-us-airways-executives-receive-8-million-in-stock-grants.html/

And they have no money for our retirement?

 

[700UW]

Stock isnt cash money from the company.

 

[usa1]

I'll take stock also!

 

[usa1]

US Airways, American apply to transfer all international routes to American after the merger


http://aviationblog....he-merger.html/

The five airlines involved in the US Airways and American Airlines merger asked the U.S. Department of Transportation to transfer all the international routes of US Airways and its two regional carriers, PSA Airlines and Piedmont Airlines, to American Airlines and American Eagle.

US Airways spokesman Ed Stewart called the filing “a positive milestone in the merger process.”

American and US Airways announced their merger Feb. 14, and now are going through the legal process to get the merger approved: antitrust review under the Hart-Scott-Rodino Act and approval by the U.S. Bankruptcy Court, US Airways shareholders and AMR creditors and claimholders.

In their joint filing, the five carriers said the transfer would benefit consumers and not hurt competition.

“In short, this merger benefits all stakeholders – consumers, employees and communities,” the filing stated. “It combines two great airlines and puts them on a path to creating a truly exceptional global airline.”
​
The filing noted that although the two airlines would be under common ownership after the merger, it would take some time before American and US Airways will combine operations, operate under the single operating certificate and fly only under the American Airlines name.

Airline officials have estimated that merger will close in September, concurrently with American’s emergence from bankruptcy court.