Corporate Options

[funguy2]

funguy2,

It's a very, very minor point in the scheme of things, but I think that the guarantee fee charged by the ATSB grew to 8% in the final documents.

Jim

If so, then I do not know. I lifted the quote from US Airways 2002 Annual Report. Perhaps it changed after that, or with the March 04 pay-down.

In any event, the point is that the Federal Government does not own 10% of US Airways, as USA320Pilot has indicated.

 

[MrAeroMan]

Am I being simple-minded, but couldn't RSA decide to pay-off the ATSB backed loans and therefore trigger a bankruptcy AFTER the ATSB is out of the picture? Would that be too slick? It seems to me that that's what Bronner has been saying: "We will NOT default on the ATSB loans."

Didn't he really want to take U private?

Honestly, I haven't been paying that much attention lately, so forgive me, if this is simple.

That's exactly what could happen Row and it would make such a filing, while still very complicated, much easier. Now, as for GE, they don't make their investments without some sort of in depth analysis and the portion of money tied to UAIR is miniscule compared to their total exposure with their lending arm GECAS. That's why they're balking about putting up the money for the RJ's because they don't think U is viable and it creates a huge risk for them if the relief from LOA 91 doesn't happen. With the RJ's at another carrier at least they would be generating revenue for the leasee to still keep current on the lease agreements with GECAS.
The big question is with Bronner and RSA. They would stand to lose a big hunk of their $260+ million with such a filing. It's a lot a money but not huge when comparing it with the total assets RSA manages. I think if Bronner thought he could file again and come out of bankruptcy with the labor agreements abrogated and court approved changes made to the agreements he would file. It would allow the labor groups to pursue self help but that may be a risk he's willing to take. Interesting times indeed.

Clue, he would use UAIR's current cash to pay off the outstanding ATSB loan leaving the company with less than $200 million in the bank.