Chapter 7 is a very complex business tool, as is Chapter 11. I don't know of an airline case that went straight to Chapter 7 without first filing Chapter 11, or I don't know if it is even possible to do so. Many airlines have filed Chapter 11 and have suspended operations simultaniously, thus buying time to prepare for Chapter 7. Chapter 7 has very little to do with airline management personnel, but rather a speciallized group that works with the court to allocate remaining assets, similar to an Executor of a bankrupt personal estate. Management will never tip their hand regarding a liquidation. In every case that I am familiar with, the crews found out about the ceassation of operations on their last trip, literally.
How Does Us Close The Doors?
- Thread starter EightySix
- Start date
Dog Wonder
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Run like Hell
Furloughd4now
Veteran
At National, we were boarding flights. Customers were watching the news in the bar, saw that we ceased operations STILL BOARDED and then were escorted off by supervisors. Gate agents were still accepting $100 cash to upgrade customers. They just walked on the plane and said "sorry" 
NO ONE (at least us worker-bees) at National knew. All the planes that were out were ordered back in. Crews had hours to gather their things and get on a plane or they were hitchiking home. We had an FA vacationing in Japan riding J/S. He managed to get home though.
The other airlines helped everyone who was stranded. For that we were grateful!
NO ONE (at least us worker-bees) at National knew. All the planes that were out were ordered back in. Crews had hours to gather their things and get on a plane or they were hitchiking home. We had an FA vacationing in Japan riding J/S. He managed to get home though.
The other airlines helped everyone who was stranded. For that we were grateful!
I don't know if this still is how it still works but I worked for a corporation in Pittsburgh that had multiple businesses that shut down operations.
We went to work one morning and the doors were locked and chained. Everyone was told to stay and when everyone arrived the doors were unlocked and we were escorted in to get our belongings. Over the next months we all were sent many letters from bankruptcy court and attorneys of all proceedings. The payout procedure was that during liquidation the employees were to be first on the list to be paid. We all eventually received huge lists of who was owed money by the company and how much was owed and in what order to be paid, which is always accessible to the public anyway. The employees were in fact at the top of the list and we indeed were the first to be paid. We all received every penny of pay that we were owed including vacation that was due and all 401k. Granted it took awhile but the court did have the money distributed more quickly than anticipated. I believe the doors were locked in Sept. and we had our money before the end of the year.
The company was not nearly as large as US and it would probably take longer to go through the mess but if the laws and procedure is still the same, I would think we would still recieve our last pay...eventually!
We went to work one morning and the doors were locked and chained. Everyone was told to stay and when everyone arrived the doors were unlocked and we were escorted in to get our belongings. Over the next months we all were sent many letters from bankruptcy court and attorneys of all proceedings. The payout procedure was that during liquidation the employees were to be first on the list to be paid. We all eventually received huge lists of who was owed money by the company and how much was owed and in what order to be paid, which is always accessible to the public anyway. The employees were in fact at the top of the list and we indeed were the first to be paid. We all received every penny of pay that we were owed including vacation that was due and all 401k. Granted it took awhile but the court did have the money distributed more quickly than anticipated. I believe the doors were locked in Sept. and we had our money before the end of the year.
The company was not nearly as large as US and it would probably take longer to go through the mess but if the laws and procedure is still the same, I would think we would still recieve our last pay...eventually!
PoorPropDriver
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- Jan 17, 2003
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Bankruptcy laws have been changed over the last 22 years. Employee wages are the first to be paid.
colorado_cowboy
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- Dec 20, 2003
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Cav, Ive got some news for you... Ive already got my locker cleaned out! There is no longer any of my personal belonging's in there. But then again I plan on bailing long before this pig goes under.cavalier said:
In the late 80's I worked for a company that filed for Chapter 7, I know what its like to work your arse off than come pay day the company folds and you get nothing but what the bird left on the tree.
PITbull
Veteran
- Dec 29, 2002
- 7,784
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Hey Cav,
And when have I been wrong since you are choosing to quote me all damn day???
You have not explained the profits that U posted inspite of soaring fuel prices and "GOFARES" that acutally bring down the yield, and inspite that every single legacy carrier reported losses. You also have not cited that U bookings are higher than any time in our history and that the company is growing a faction of its business....WITH WHAT MONEY???
The only money this company does not want to foot is for labor to have a livable wage or a promised pension. Period.
And they will rid themselves of it one way or another. THAT DOES NOT MEAN WE ARE GOING OUT OF BUSINESS!!!
One week, Lakefield is talking about the profits of U and what attributed to it; next he's talking about huge employee profit sharing; the next week its BK!!!
There is no "doom or gloom" only that which was created by management to "hook" the employees.
The company has you smack dab in front of Smoke & mirrors.
Move away from it.
And when have I been wrong since you are choosing to quote me all damn day???
You have not explained the profits that U posted inspite of soaring fuel prices and "GOFARES" that acutally bring down the yield, and inspite that every single legacy carrier reported losses. You also have not cited that U bookings are higher than any time in our history and that the company is growing a faction of its business....WITH WHAT MONEY???
The only money this company does not want to foot is for labor to have a livable wage or a promised pension. Period.
And they will rid themselves of it one way or another. THAT DOES NOT MEAN WE ARE GOING OUT OF BUSINESS!!!
One week, Lakefield is talking about the profits of U and what attributed to it; next he's talking about huge employee profit sharing; the next week its BK!!!
There is no "doom or gloom" only that which was created by management to "hook" the employees.
The company has you smack dab in front of Smoke & mirrors.
Move away from it.
colorado_cowboy
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- Dec 20, 2003
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Pitbul it may not be going under but not all of us are going to make the cut. While US Airways might still exist it may not exist for all of us.PITbull said:
Your welcome to your opinion as I am to mine but you coming on here and telling me or anyone else here to knock it off has gone beyond that.
PITbull
Veteran
- Dec 29, 2002
- 7,784
- 456
colorado_cowboy said:
CC,
Besides your self induced management fear, what have you to prove dispite what is in the 10Q report that states to the contrary, that leads you to surmise that we are going over a cliff? Granted, the company is looking to furlough BIG.
Outside of managment saying we are going out of business , doesn't make it so. They have said these exact words many times over.
If you believe this, than the negotiations are moot. I happen not to believe that.
Don't get me wrong...the co. is out to screw the employees of as much of a wage and jobs as possible, but they are not going out of businesss.
And again, don't mistake me here... I have NO delusions that my actions or inactions will save or destroy a company...
This company is moving with or without our acknowledging it.
If the co. decides to move into BK instead, that is where they will see the wrath of labor.
OldGuyinPA
Veteran
- Aug 20, 2002
- 700
- 8
PITbull...I agree with you.
All of this been thought out and planned.
As Alfred E. Newman said...What me worry.....NOT !!
Only USA320Pilot is worried...
Respectfully
All of this been thought out and planned.
As Alfred E. Newman said...What me worry.....NOT !!
Only USA320Pilot is worried...
Respectfully
