Delta Creditors Committee May Ask US Airways to Extend Deadline

[PHLfa88]

B.O.B

That only one. How about the other three repeats?

Do us a favor and lay off for a while.....very few people here care what you believe.

If You Don't Want To Read Repeats Just Stay On The DELTA Board!! Like There Are Not ANy On There!! NEXT!!

 

[delta777]

http://www.marketwatch.com/tools/quotes/quotes.asp?symb=lcc

Apparently the boys down at Wall Street and Main didn't get the info. about the possible deadline extension, that or they've soured on the deal.

 

[IMisstheAladdinTrays]

http://www.marketwatch.com/tools/quotes/quotes.asp?symb=lcc

Apparently the boys down at Wall Street and Main didn't get the info. about the possible deadline extension, that or they've soured on the deal.

Wonder what the Delta Stock is doing?

 

[LCC_#1]

http://www.marketwatch.com/tools/quotes/quotes.asp?symb=lcc

Apparently the boys down at Wall Street and Main didn't get the info. about the possible deadline extension, that or they've soured on the deal.

no legs, friend...the entire sector is down.

 

[N903AW]

Wonder what the Delta Stock is doing?

I don't think one share of Delta stock converted can buy you a soda pop right now.

 

[aquagreen73s]

Wonder what the Delta Stock is doing?

Most others were down too:

http://finance.yahoo.com/q/co?s=LCC

I guess Goldman Sucks downgraded CAl...at least that's the excuse of the day. LCC and CAL have been the Wall Street darlings of late so it's not surprising I guess to see them both get hit the same amount. What does it mean? Nothing...other than the stock went down today. Monday it might go up and in that case it will still mean nothing.

Jim is exactly right when he says everything is speculation until we hear from the creditor's committee. Nobody knows but you can bet your life savers that the guys in the Sandcastle didn't go into this without doing their homework first. Their numbers are sufficient and their analysis is sound enough to get $5 billion in cash ponied up from Wall Street. What's more, I suspect the Sandcastle Team was able to figure out what was needed to win in the creditor's committee. And for the most part, that boils down to their plan being better than DAL's. It's probably getting to the point that Doug wants this to be litigated (one plan pitted against the other) and the conflict of interest matter is the way to do it. ie All the Sandcastle team needs is for an independent valuation of DAL's plan to take place because they know it won't withstand scrutiny. (I'm speculating that is their belief based on prior statements from Kirby and Parker which attack DAL's own valuation.) For DAL to "win," they need the UAir plan to go away in committee and that...just ain't going to happen at this point. It's hard to justify ignoring $5 billion in cold hard cash when you're a company in bankruptcy and you yourself can offer nothing better than promissory notes. Possible, but tough.

 

[FWAAA]

Wonder what the Delta Stock is doing?

Doesn't really matter what Delta stock is doing since it will all be canceled (completely worthless) when a plan of reorganization is confirmed. Merger or no merger, Delta stock is gonna be worthless, just like the common stock of nearly every other bankrupt airline.

Better question would be: Wonder what Delta BONDS are doing (since the bondholders will get the NEW Delta stock)? Creditors are the only ones who matter now, not Delta stockholders.

 

[BoeingBoy]

Wonder what Delta BONDS are doing (since the bondholders will get the NEW Delta stock)?

Saw something yesterday that said they were down a little - 61 cents on the dollar or something like that. What's been interesting to me is that NW unsecured debt has been trading higher than DL's (as high as 85 cents on the dollar), even though NW doesn't have a merger offer on the table.

Jim

ps - Oh, and crude closed above $55/bbl today. That had just a little to do with the airlines being down.

 

[IMisstheAladdinTrays]

Doesn't really matter what Delta stock is doing since it will all be canceled (completely worthless) when a plan of reorganization is confirmed. Merger or no merger, Delta stock is gonna be worthless, just like the common stock of nearly every other bankrupt airline.

Better question would be: Wonder what Delta BONDS are doing (since the bondholders will get the NEW Delta stock)? Creditors are the only ones who matter now, not Delta stockholders.

I think sarcasm escapes some of you!

 

[delta777]

no legs, friend...the entire sector is down.

More excellent observations from our astute forum members. The only problem with comparing LCC stock to other carriers is that no other carrier is attempting a hostile takeover of another, of which half of the $10 billion dollar offer (actually $9.8 billion with todays drop) is in company stock. Something for the creditors to chew on. 😀

 

[longing4piedmont]

no legs, friend...the entire sector is down.

Actually LCC broke a significant six month trend line and may or may not find support between $48 and $50. If it does not bounce of those numbers, the next support level for the stock is around $37. You do not want to know were the next support level is after that. The stock is now within a dollar of the close on November 14, 2006. The ponzi scheme is about to come unraveled.

How much will the deal be worth at $37 a share......

 

[Gilding the Lily]

Most others were down too:

http://finance.yahoo.com/q/co?s=LCC

I guess Goldman Sucks downgraded CAl...at least that's the excuse of the day. LCC and CAL have been the Wall Street darlings of late so it's not surprising I guess to see them both get hit the same amount. What does it mean? Nothing...other than the stock went down today. Monday it might go up and in that case it will still mean nothing.

Jim is exactly right when he says everything is speculation until we hear from the creditor's committee. Nobody knows but you can bet your life savers that the guys in the Sandcastle didn't go into this without doing their homework first. Their numbers are sufficient and their analysis is sound enough to get $5 billion in cash ponied up from Wall Street. What's more, I suspect the Sandcastle Team was able to figure out what was needed to win in the creditor's committee. And for the most part, that boils down to their plan being better than DAL's. It's probably getting to the point that Doug wants this to be litigated (one plan pitted against the other) and the conflict of interest matter is the way to do it. ie All the Sandcastle team needs is for an independent valuation of DAL's plan to take place because they know it won't withstand scrutiny. (I'm speculating that is their belief based on prior statements from Kirby and Parker which attack DAL's own valuation.) For DAL to "win," they need the UAir plan to go away in committee and that...just ain't going to happen at this point. It's hard to justify ignoring $5 billion in cold hard cash when you're a company in bankruptcy and you yourself can offer nothing better than promissory notes. Possible, but tough.

Aqua,

In my view, all this Creditors' Committee 'conflict-of-interest' talk is little more than a ruse by the Creditors' Committee to drag its feet until the exclusivity period has tolled for DL. There may actully be a potential conflict among different creditors; but this is typical in large Chapter 11's and does not warrant much attention... unless of course, the committee is, as I believe, attempting to prolong this process for its own gain. Needless to say, the end of the exclusivity period is quickly approaching and, as I have stated earlier, I think DL will lose in any attempts to extend the filing exclusivity period, as it has already filed its POR.

Once the exclusivity period has tolled, the Creditors' Committee may file its own competing plan that may or may not account for a post-bankruptcy merger between DL and US. This would give the Creditors' Committee much more leverage during negotiations. As it stands, they may like several portions of DL's POR, but dislike significant portions as well. Likewise, they may like parts of US's offer, but would want to seriously alter some of the terms before any agreement could be reached. After the exclusivity period tolls, the Committee may file its own POR taking parts of the DL plan and parts of the US offer... until the exclusivity period has tolled the Committee would be hard-pressed to get DL to even seriously consider parts of the US proposal. This way, the Committee can draft a plan that best fits its needs and may potentially be the best for all the stakeholders of US and DL... including the employees, investors, and customers. (not including current stock holders of DL).

 

[aquagreen73s]

Aqua,

In my view, all this Creditors' Committee 'conflict-of-interest' talk is little more than a ruse by the Creditors' Committee to drag its feet until the exclusivity period has tolled for DL. There may actully be a potential conflict among different creditors; but this is typical in large Chapter 11's and does not warrant much attention... unless of course, the committee is, as I believe, attempting to prolong this process for its own gain. Needless to say, the end of the exclusivity period is quickly approaching and, as I have stated earlier, I think DL will lose in any attempts to extend the filing exclusivity period, as it has already filed its POR.

Once the exclusivity period has tolled, the Creditors' Committee may file its own competing plan that may or may not account for a post-bankruptcy merger between DL and US. This would give the Creditors' Committee much more leverage during negotiations. As it stands, they may like several portions of DL's POR, but dislike significant portions as well. Likewise, they may like parts of US's offer, but would want to seriously alter some of the terms before any agreement could be reached. After the exclusivity period tolls, the Committee may file its own POR taking parts of the DL plan and parts of the US offer... until the exclusivity period has tolled the Committee would be hard-pressed to get DL to even seriously consider parts of the US proposal. This way, the Committee can draft a plan that best fits its needs and may potentially be the best for all the stakeholders of US and DL... including the employees, investors, and customers. (not including current stock holders of DL).

I don't know much about BK but your idea of getting through the exclusivity period is very compelling. The problem I see for DAL going forward is their credibility. Their plan focuses on future promises of performance and you don't even need to be a lawyer to understand that a promise is only as good as the promisor. DAL management has wrecked the company. They've given up on DFW, they've taken pensions and pay, and they really have no plan. And all this same management can do is go to the creditors and promise future performance. On the flip side, I suspect Doug's offer is designed to be the minimum, just barely enough, to get a lot of valuable stuff and the creditors see this too. Somewhere down the process this will get ironed out. Your analysis, though, is quite impressive.

 

[BoeingBoy]

In my view

Gilding,

Wouldn't the easiest way for the Committee to accomplish "foot dragging" be to ask the judge to postpone the Feb 7 hearing?

You know a lot more about this than me, but it seems that as long as that hearing is on the docket, all the "leaks" won't do much since there'll only be one plan in front of the judge that day.

Jim

 

[Gilding the Lily]

Gilding,

Wouldn't the easiest way for the Committee to accomplish "foot dragging" be to ask the judge to postpone the Feb 7 hearing?

You know a lot more about this than me, but it seems that as long as that hearing is on the docket, all the "leaks" won't do much since there'll only be one plan in front of the judge that day.

Jim

Yes, that is the easy way... and it very may well be the way that that the Committee chooses to act if it wants to further delay the process. But the judge is going to want reasons... and these types of things occuring within the Committee may be a part of the decision-making process for the court to determine that cause exists to postpone the proceedings.