Haven't Heard About the Extra 4% in Equity to be Held Aside?

[TWU informer]

The "original" 5% was withheld from the first distribution. The additional 9% was withheld from day 120's distribution.

Whats interesting to me is that AA agreed in the restructuring agreement to pay $5 million in legal fees for the TWU in the event of a lawsuit, and now the TWU is taking from the membership to pay for the lawsuit. Who has the answer to that riddle?

 

[AANOTOK]

I can't answer that one, but I'm sure NYer will be able to solve it.  B)

 

[NYer]

Whats interesting to me is that AA agreed in the restructuring agreement to pay $5 million in legal fees for the TWU in the event of a lawsuit, and now the TWU is taking from the membership to pay for the lawsuit. Who has the answer to that riddle?

 
In a bankruptcy, the Debtor often pays for the legal fees of the Creditor. They paid the bankruptcy legal fees of all the unions, as Creditors, in a sum up to $5M. That payment has nothing to do with the Equity and any issues related to that after it has been distributed from the Debtor to the Creditors (or the Members, in our case)

 

[NYer]

The "original" 5% was withheld from the first distribution. The additional 9% was withheld from day 120's distribution.

 
According to the wording in the Court Order, it seems there was enough value taken from the final distribution as to satisfy 14% of the total amount of shares distributed.
 
"Upon receipt of the day 120 distribution of equity from American, TWU will hold in its American Airlines equity distribution trust account shares equaling 14% of the total number of shares it received from American."
-----------------------------------------------------------------------------------------------------------------------------------
Day-120 (April 8, 2014):

- Total shares allocated to TWU – 2,372,098
- Shares held-back for 757 Grievance – 22,917
- Shares held in Reserve – 1,121,815
- Shares distributed to eligible participants – 1,227,366

 

[AANOTOK]

Equity is given out in Stock, not money. It is part of the bankruptcy process so there is nothing that can be done as ALL creditors are given their recovery in the same from.

The original 5% was supposed to be taken from the total which meant a cut from each distribution. According to court documents the other 5% plus 4% were to be taken from the final distribution.

Not what you said earlier NYer.

 

[Deleted member 14439]

Another 21 shares in compushare this morning. Any idea what that is?

 

[DallasConehead]

According to the wording in the Court Order, it seems there was enough value taken from the final distribution as to satisfy 14% of the total amount of shares distributed.
 
"Upon receipt of the day 120 distribution of equity from American, TWU will hold in its American Airlines equity distribution trust account shares equaling 14% of the total number of shares it received from American."
-----------------------------------------------------------------------------------------------------------------------------------
Day-120 (April 8, 2014):
- Total shares allocated to TWU – 2,372,098
- Shares held-back for 757 Grievance – 22,917
- Shares held in Reserve – 1,121,815
- Shares distributed to eligible participants – 1,227,366

Let me see if I understand this correctly, you posted that the TWU held nearly as many shares, (by court order) in reserve as was distributed to the membership?

Edit: So I would have gotten nearly 2x as many shares on day 120 if not for the reserve?

 

[WeAAsles]

Another 21 shares in compushare this morning. Any idea what that is?

I did not see any further shares issued to me today 4/16/2014. Are you sure of the date?

 

[Deleted member 14439]

I did not see any further shares issued to me today 4/16/2014. Are you sure of the date?

yep. AAL common stock, grants and awards. 14 apr 2014. 21 shares. Shows " common stock awards (trust) twu."

 

[enough already]

31 in mine.

 

[TWU informer]

 
According to the wording in the Court Order, it seems there was enough value taken from the final distribution as to satisfy 14% of the total amount of shares distributed.
 
"Upon receipt of the day 120 distribution of equity from American, TWU will hold in its American Airlines equity distribution trust account shares equaling 14% of the total number of shares it received from American."
-----------------------------------------------------------------------------------------------------------------------------------
Day-120 (April 8, 2014):
- Total shares allocated to TWU – 2,372,098
- Shares held-back for 757 Grievance – 22,917
- Shares held in Reserve – 1,121,815
- Shares distributed to eligible participants – 1,227,366

 
That looks like alot more than 14% reserve to me.....by far

 

[AANOTOK]

Nothing more in mine.

 

[2ndGENAMT]

Extra shares are for 757 grievance if you were part of that group.

At least according to Danker.
http://twu514.org/blog/2014/04/09/day-120-equity-distribution-note-from-president-danker/

 

[Deleted member 14439]

Extra shares are for 757 grievance if you were part of that group.

Thats what I figured.

 

[FWAAA]

That looks like alot more than 14% reserve to me.....by far

While it's almost 50% of the day 120 distribution, it is supposed to be 14% of the total TWU equity from all distributions (from Dec 9 thru day 120).    
 
How many TWU members took the early out and were excluded by the TWU from receiving any equity?   I thought it was about 10% or so, and thus 10% of the equity sounds like a reasonable reserve in case they win.