The Bankruptcy Road Ahead

[BoeingBoy]

Looks like the next big date is 11/18/04. There is a hearing in BK court that day to consider the following motions (so far):

Motion for an Order Conditioning the Use of Property
-Wachovia Bank, as Trustee
-US Bank, as Trustee
-Bank of NY, as Trustee
-Kyodo Leasing Co
-Showa Leasing Co
-Mitsui Leasing Capital Corp
-Marubeni America Corp

Motion to Compel Debtor to Assume or Reject Executory Contracts:
-Claridge Hotel, Chicago
-Service Force, Inc
-Availl, Inc

Motion to Reconsider Interim Relief
-AFA
-IAM

Motion to Authorize the Debtors to Enter into Forms of Stipulation Modifying the Automatic Stay and Compromising Claims
-US Airways

Motion to Authorize Modifications to the Branded Credit Card Agreement with Bank Of America
-US Airways

Motion to Authorize the Sale of De Minimis Assets
-US Airways

Motion to Authorize Rejection of Aircraft Lease
-US Airways

Motion to Authorize Rejection of Real Property Lease
-US Airways

Note - the entity presenting the motion is shown below the motion.

Jim

 

[700UW]

There are lease payments due 11/11 as cure payments, if US does not pay the lessors can take the planes back.

 

[delldude]

There are lease payments due 11/11 as cure payments, if US does not pay the lessors can take the planes back.

[post="197499"][/post]​

sources have seen some engine rematch going on either at PIT or at GE o'haul eng. facility....methinks something up..... :down:

 

[BoeingBoy]

Sorry, gang, but I missed a hearing on 11/9/04. It appears two motions will be the subject of this hearing, both filed by US. Those parties filing objections to these motions are listed below each:

Motion to Extend the Deadline to Assume, Assume and Assign, or Reject Unexpired Leases on Nonresidential Real Property
-Roanoke Regional Airport Commission
-City of Phoenix
-Lehigh-Northampton Airport Authority
-Lee County Port Authority
-Columbus Regional Airport Authority
-Asheville
-Broward County Aviation Department
-Broward County Board of Commissioners
-Metropolitan Washington Airports Authority
-Wayne County
-Allegheny County Airport Authority
-Philadelphia Authority for Industrial Development
-City of Philadelphia, Dept of Commerce, Division of Aviation
-The Bank of New York

Motion to Authorize Entry into 1110 Agreements and Stipulations Extending Time to Comply with Section 1110 of the Bankruptcy Code (this concerns rejection/assumption of A/C leases - jim)
-Kreditanstalt Fur Wiederaufbau
-CIT Leasing Corporation
-GMAC Commercial Finance LLC
-Bombardier Inc.
-Canadian Regional Aircraft Finance Transaction No. 1 Limited
-U.S. Bank National Association
-Pegasus Aviation, Inc.
-Wachovia Bank (added 11/4/04)

Jim

 

[BoeingBoy]

New addition to the 11/18/04 hearing calendar:

Motion to Approve Order Fixing a Specified Period of Time During Which US Airways Group, Inc. Must Determine Whether to Assume or Reject an Executory Agreement Between It and Rolls-Royce PLC and Relieving Rolls-Royce PLC From Further Performance of any Obligations Thereunder Until Such Executory Agreement is Assumed and All Defaults Thereunder Have Been Cured
-Rolls-Royce

The company is in default on nearly $6,000,000 in monthly payments to RR per the terms of an agreement on overhauls of the RB-211 engines on the 757 fleet (and soon to be nearly $10,000,000 behind). According to the motion, US has exhausted it's stock of spare RB-211's and an interim agreement allows for the release of one engine by RR to be used for a scheduled engine change today (11-4-04). US has not paid the entire sum specified by this interim agreement. The motion seeks a 30-day limit on the time for US to either assume (and bring payments up to date) or reject the basic argeement.

Jim

 

[BoeingBoy]

Motion to Authorize Entry into 1110 Agreements and Stipulations Extending Time to Comply with Section 1110 of the Bankruptcy Code (this concerns rejection/assumption of A/C leases - jim)
-Kreditanstalt Fur Wiederaufbau
-CIT Leasing Corporation
-GMAC Commercial Finance LLC
-Bombardier Inc.
-Canadian Regional Aircraft Finance Transaction No. 1 Limited
-U.S. Bank National Association
-Pegasus Aviation, Inc.
-Wachovia Bank (added 11/4/04)

[post="197839"][/post]​

Add Ad hoc committee of Certificate of Beneficial Interest Holders

Jim

 

[PITbull]

I didn't see an 1114 motion to terminate retiree medical on these hearing dates. Nor a motion of abrogation.

Is this a good sign? Or am I too premature on that assumption?

 

[BoeingBoy]

PB,

Working from memory, the company's motion and filed statements on the formation of the retiree committee sought a "fast track" to the 1114 process, laying out a timeline for the 1114 process. It contemplated negotiations wrapping up and/or the 1114 motion being filed on 11/15/04 (the same date they envisioned filing any necessary 1113c motions).

The judge declined to go along with the company timetable in his order establishing the retiree committee. The only timeline he set was for the first meeting between retiree committee and company reps - 3 days after the order was issued as opposed to the next day as the company requested.

Now that's I've made a short story long, the result is that I haven't seen any other indication of when the 1114 motion will be filed.

At least a couple of pilots have talked to Tom Davis, the retired pilot rep on the retiree committee (you may remember him - PIT based before merger I think). They were told that he couldn't discuss any details of the negotiations but would try to get the judge to ok release of some info because of the interest of those pilots considering early retirement in an attempt to "grandfather" their retirement medical coverage. So you or the AFA MEC might try to contact the F/A rep on the retiree committee.

Jim

 

[BoeingBoy]

And PB,

In case you didn't know, here are the committee members:

1. ALPA Retirees Member: Thomas G. Davis
2. AFA Retirees Member: Judith M. Schmidt
3. CWA Retirees Member: Judy W. Dreyer
4. Non-Union Retirees Member: James E. Lloyd
5. Non-Union Retirees Member: Gerard Carusi

The TWU and IAM will represent their retired members.

Jim

 

[robbedagain]

the vampires failed to add this one to the list!!!!! the large numbers of employees having to file ch11 bankruptcy due to the large and unsustainable paycuts forced upon us by the evil vampires running usair

 

[aafsc]

the vampires failed to add this one to the list!!!!! the large numbers of employees having to file ch11 bankruptcy due to the large and unsustainable paycuts forced upon us by the evil vampires running usair

[post="198312"][/post]​

Is it possible for the the unions (they are on the creditors committee) to make a motion to cut management's pay 35% and eliminate pensions; after all, the company is in dire straits. Also can it be brought to the courts attention that Jerry Glass is allegedly triple dipping? There should be something stating the relationships.

 

[BoeingBoy]

Well, the 800 pound gorilla (in a sense) has filed a motion that will be heard on the 18th. EDS (the folks who provide all the IT services) is asking that they be paid in advance instead of up to 60 days in arrears. According to the filing, their bill is about $12 million a month.

They are NOT asking that the company assume or reject their contract.

Jim

 

[jimntx]

If EDS gets its wish granted, expect a lot of the other creditors to ask for a "me too" clause also.

 

[BoeingBoy]

Without going back and looking thru the creditor list, I think EDS is one of the largest unsecured creditors (and not counting the "future aircraft deliveries" creditors). They're owed $28.2 million prepetition and, as I said above, about $14 million per month post-petition which runs up to 60 days in arrears (or up to $28 million at any given time).

The hearing on the 18th could get interesting....

Jim

 

[USA320Pilot]

Without DIP financing, the single most important issue in US Airway' formal reorganization is cash flow. Employee contracts, aircraft leases, property leases, and services are all critical issues going forward. This is particularly important in light of fuel prices and US Airways hedged at 5% at $30 per barrel in 2005. In today's commodity trading, NYMEX Crude Oil Futures for December delivery are down 99 cents to $48.10 at 12:30 p.m. The price of Crude Oil has come down about $8.50 per barrel during the past 10 days, obviously a welcome development for the airline industry and US Airways.

The company is squeezing EDS to try to lower its lease expense and the IT service provider is trying to keep its fees as high as possible.

Each of the parties listed above need one another and all must share in the company and industry restructuring. Thus, I expect successful resolution to each issue above with all parties trying to obtain the best deal possible.

Regards,

USA320Pilot