Merger "facts"

[TravelDude]

1a)Does this request foreshadow a second half of 04 end to the UAL Bankruptcy?
1b)Does anyone think that UAL will get out of BK before July?
2)Is UAL running out of unrestricted cash?
3)Does the move by Moodys, to stop covering UAL debt, really amount to anything?
4)For the past months UAL execs have been saying that there are 4 things that need to be solved prior to BK exit-Aircraft leases,Gate leases, ATSB loan, employee pension. Have any of these problems been solved?

Great Questions, I hope someone can provide "FACTUAL" answers!

 

[ual06]

1a)Does this request foreshadow a second half of 04 end to the UAL Bankruptcy?
1b)Does anyone think that UAL will get out of BK before July?
2)Is UAL running out of unrestricted cash?
3)Does the move by Moodys, to stop covering UAL debt, really amount to anything?
4)For the past months UAL execs have been saying that there are 4 things that need to be solved prior to BK exit-Aircraft leases,Gate leases, ATSB loan, employee pension. Have any of these problems been solved?

Great Questions, I hope someone can provide "FACTUAL" answers!

In MHO, "FACTUAL" answers will be provided in about 4-6 months.

 

[767jetz]

1a)Does this request foreshadow a second half of 04 end to the UAL Bankruptcy?
1b)Does anyone think that UAL will get out of BK before July?
2)Is UAL running out of unrestricted cash?
3)Does the move by Moodys, to stop covering UAL debt, really amount to anything?
4)For the past months UAL execs have been saying that there are 4 things that need to be solved prior to BK exit-Aircraft leases,Gate leases, ATSB loan, employee pension. Have any of these problems been solved?

1a) Please read my last post. It does NOT foreshadow a second half 04 exit. Again, the request merely retains UAL's exclusive right to file it's POR, and circumvents any attempt by outside investors to submit a competeing plan. It allows UA to tie up any loose ends by June 30th.

1b) Yes, many people do. In fact the CEO and board members have all re-confirmed the exit by the end of June.

2) No UAL is not running out of unrestricted cash. In fact, with the exception of maybe December (not sure about that month) UAL's unrestricted cash has been growing significantly every month. I don't have the exact #'s, but the unrestricted portion is around $1.6-1.8 Billion.

3) Moody's move was due to lack of information offered by UA, therefore their inability to make accurate assesments.

4) 4 hurdles: Aircraft leases are coming along. It is a long and time consuming process but has gone very well so far. Same goes for gate leases. ATSB Guarantee is a big one, but evryone involved is optimistic, including the bank providing the cash. The current POR retains all employee pensions, and news today is that the House and Senate will pass significant Pension funding relief.

I hope his answers some of your questions.

 

[whatkindoffreshhell]

ATSB Guarantee is a big one, but evryone involved is optimistic, including the bank providing the cash. The current POR retains all employee pensions, and news today is that the House and Senate will pass significant Pension funding relief.

[/quote]
UA betting the farm on ATSB approval. That sounds familiar. Great business plan, did the pricey consultants come up with that one?

Of course the banks sound optimistic they're just looking for a commission.

Twist the numbers and happy talk all you want, still isn't bringing more revenue.

The ATSB is not going to approve UA's loan.

Plan B anyone?

 

[novaqt]

Correct me if I am wrong, but I believe I read somewhere that Mr. Tilton said that we do not need the ATSB loan guarantee to emerge from BK. We would like to have it and we will resubmit the application and expect that it will pass government scrutiny this time.

 

[diogenes]

Should she receive the same vacation benefits and schedule perks over the employees who have been working at Macy's prior to her? In the real world, this just doesn't happen. Anywhere.

That depends. If Macys had acquired her company, and there was a properly executed contract between the companies stipulating such benefits, then the answer would be 'yes'.

Why do we have higher expectations of contracts we have with our realtor, or our plumber, or our dog groomer, than we do with our labor contracts?

I am sure if contracts the public enters into (cell phone, cable, leases, deeds of trust, etc) were as routinely ignored as labor contracts, there would be a hue and cry for reform.

 

[RowUnderDCA]

Is it legally ok to prevent debt holders on the creditor's committee(?) to have NO opportunity to submit an alternative plan? Or, is it that no creditor has made a motion to submit a plan? Can the judge just say, I don't want to hear it?

So, if the UAL's plan is accepted by the judge, and the creditors approve it, can one disgruntled creditor be prevented from filing an alternative?

I seriously don't know. It just seems strange that the judge can simply allow UAL management TOTAL exclusivity despite the interests of creditors and stock holders.

 

[767jetz]

Twist the numbers and happy talk all you want, still isn't bringing more revenue.

The ATSB is not going to approve UA's loan.

Twist the truth and the facts all you want, oh great oracle.

My bet remains on ATSB approval.

And by the way, novaqt is correct. ATSB is the best solution for UA, but by far is it the only one. UA is starting to gain access to traditional lending markets again. They can get the money, it will just cost more. (ie: interest, and possibly more pain from employees.)

 

[767jetz]

Is it legally ok to prevent debt holders on the creditor's committee(?) to have NO opportunity to submit an alternative plan?

Yes it is. And approval by the judge is expected. That's the key. UA plans to emerge by June 30th. After March, if others can submit a competing plan, UA will be forced to submit their plan premptively. If that exclusivity can be extended, UA can continue it's negatiations with creditors until the last possible moment, in effect squeezing every last drop out of the BK process.

The judge will look at the progress of UA's reorganization, and if he believes they are reasonably on track and the extra time will improve their negotiating position, he will likely aprove the motion.

So far all indications are that the judge and many others are very pleased with the progress.

 

[Tim Thorpe]

Why waste your time on a thread called "Merger Facts". Try "Liquidation Facts" instead. When they distress terminate everyones pension fund the deal will be sealed.

 

[Fly]

Tell you what... The strangest thing I've seen with the BK is that I've never seen the employees work as hard as they do now. The attitude is BETTER. I would have guessed it to be the other way around (and I would have been wrong) WTG United...keep up the good work!!!