Sharon is making some very good points.
The encouraging part is that she admits the legal team will argue the point for the LBO if the vote is no.
The discouraging part is that she is absolutely dead on ,when she indicates that the lengthy process will probably result in a very bad situation for the foreseeable future ,after abrogation .
One that regardless of the final outcome will be so far in to the future that will negate any gains ,if any.
Having said that, here is my opinion about our situation.
I believe that the Frontier decision is flawed.
The Bankruptcy process requires the company to prove that the changes are necessary for their business plan..
The position of the court that the term sheet is somehow the only plan they judge should consider is patently false if the company during the process made a better offer.
The Term sheet( and Plan) is to be proven necessary by the company in court.
It is not considered De facto correct.
A new offer contradicts that the term sheet is necessary.
It actually disproves that.
The court in my opinion is directed to see that the changes are necessary, not onerous or punitive in nature, nor excessive.
In other words the company cannot impose a term sheet that brings down all to min wage (Trying to make a point here), even though doing so would definitely be a plan that would help them emerge.
The admission by submission that a plan less taxing on the employees (LBO) is acceptable to the company for exit, with the same business plan in place, fly’s in the face of the term sheet proof requirement that the term sheet is necessary.
(And that is why a business friendly court would want the LBO to be inadmissible)
At least this is how I understand the process.
Not an attorney, just trying to interpret what is in front of me.
I cannot believe that the appeal process will not reverse that, if argued properly.
In addition I believe that when the company enters punitive terms on an offer (accept or get worse) is a direct violation of the bargain in good faith required in the process,……. in my eyes anyway.
Sharon’s last sentence about how long, uncertain and painful the process could be, is prophetic.