The Bagfather
Senior
Can't Parker make a deal with the stockholders after the excusivity period and before emergence from BK?Many confuse the bankruptcy process with the free market. Hostile takeovers in BK court are rare and the reason is because the shareholders are usually wiped out and have little to no say in the matter whereas outside of BK court, the shareholders get to vote on the bid. It's a lot easier for the management in BK to cut a deal with the creditors and also use the BK rules to fend off a bid which the management considers to be hostile. My guess is that Horton succeeds in emerging solo, but that's hardly a long term success for the AMR employees. LCC has a lot more staying power as a solo than does AMR. Just look at the 2nd quarter and that tells the whole story. It looks like AMR is following the same path as the legacy US Airways did in going into BK1 and not making the structural changes necessary to be viable once emerging, and then finding themselves right back in BK court. By that time Horton will be gone with his hundreds of millions and another Lakefield type will come in to do what should have been done in BK1 which is merge with LCC.