The New Dude Ain''t Got No Time!

[Busdrvr]

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On 9/3/2002 723 PM

G4G5--

I think you make some good points and I agree with you that there are some strategic advantages to going the Chapter 11 route. But it would not all be peaches and cream. Remember, ALPA (and the IAM) have their pensions tied up in an ESOP that would be liquidated in a Chapter 11.

As for the $875 million note due in Novemeber which UAL says it cannot obtain refinancing on, maybe Chevron-Texaco is willing to carry the paper?[:bigsmile:] [:bigsmile:]"



The ALPA Pilots used only part of the B fund to buy UAL stock at an inflated price during the ESOP period ONLY. The B-Fund is a pilot direct account similar to a 401K. The pilot A-Fund (defined benefit) is NOT tied to the ESOP, and believe it or not, is one of the better funded A-funds in the industry (on a percentage basis is funded better than every other airlines except DAL). So in other words, you don't appear to have a command of the facts. BTW, the ESOP share are "perferred" shares and take priority over common stock in any BK proceeding.

 

[UAL777flyer]

MrMarky,

Thanks for the kind words. While I appreciate your sincere support of my abilities, I have much to learn before I qualify for that level. But thanks just the same.[:bigsmile:]

I don't mean to sound like a pessimist when I say that I think a bankruptcy filing will happen at UA. I just think that the fact that Tilton has assumed the reigns with only two weeks until the end of the self-imposed deadline doesn't bode well for turning things around outside of the courts. I don't see the IAM or AFA being any more willing to contribute than they have already. So Tilton's honeymoon could be short-lived. I hope not. In any event, I'm thankful that we'll probably know the deal in short order. I'm tired of being strung along for months and months in an endless sea of negativity and bad press. Whatever pain we have to shoulder to turn this thing around, let's just get it over with already so we can start to rebuild this company.

 

[novaqt]

I think that with the Tilton onboard now, perhaps he can sit down with the creditors of the notes that are due and restructure the notes voluntarily without having to file bankruptcy. Tilton is an oil man. This tells me he has Administration support behind him. Tilton has a reputation of getting along with unions, not bust them up. I believe the Bush Administration is not interested in the devastating effects that a United bankruptcy would have on the November elections. Bush cannot afford to lose his union members' support in November's elections. The Dems want bankruptcy so all union members become so angry that they change the face of Congress and thus maintain control of the Senate. Bush cannot afford to anger the Union membership right now.

So sitting down with the note holders and restructuring the notes voluntarily will be a better solution all around. If the note holders force United into bankruptcy court, they usually lose by getting less by the bankruptcy Judge.

 

[Airmech]

Let me start off by saying I am not a employee of United, but I have been following what has been going on because it affects the whole industry.
I find the timing of announcing these massive concessions interesting. I am wondering if this was done just before the new CEO was announced to make it easier for him to come in on his white horse and save the day by announcing the cuts will not be as deep, giving him a little more support from the employee groups.
Do you think Tilton new or was involved in announcing these cuts before he accepted?
just a thought.

 

[GGpillow]

Good point, and definate possibility in my opinion.

 

[avek00]

I'm 100% certain that Tilton will set a new deadline. He did not set the current one, and is not legally bound by it. That said, the deadline could be 01/01/04 and IMHO it wouldn't make a difference...

 

[avek00]

Just as an FYI, Bethune was NOT the CEO of CO during its second reorganization. He came in about a year after CO re-emerged in 1993.

 

[UAL777flyer]

I think the setting of a new deadline will have a lot to do with whether he's successful in getting the ATSB to give UA more time to re-submit their loan application.