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On 1/9/2003 12:30:53 PM Tim Nelson wrote:
Question 3
You suggest that management will break its promise backed up in a binding letter and run back to the judge if we vote no.
Now the facts.
1. No Judge has thrown out an 1113 letter from an airline in chapter 11. Nuff said.
2. But precedents are set so for arguments sake, let's say our current management lies again and convinces the judge to throw the 1113 out.
Now you have a work force that is free to do alot of things and it will present troubles to investors of this company, ie., the investors want signed contracts to protect their intere$t, the last thing they want is a "majorly" pissed off and disgruntled work group that is free to take "legal" self help actions at any time.
How does that protect the investment community?
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Oh, somebody is in for a rude shock this morning, Tim.
http://www.usatoday.com/money/biztravel/20...-pay-cuts_x.htm
I believe that was in response to an 1113(e) motion. In bankruptcy, as has been shown, contracts, letters, and the like are not worth the paper they are printed on if the judge believes they are not in the best interest of the creditors.
As for "self-help" action:
If that happens, the company is free to replace the group taking self help, if I'm reading things correctly. Something to consider.