Unions secure three seats on creditors committee

[High Speed Steel]

Unions for the carrier’s pilots, flight attendants and mechanics join the panel after failing to reach new contract agreements with American in negotiations that began as far back as 2006. American parent AMR Corp. singled out industry-leading labor costs as one reason for its Nov. 29 bankruptcy filing.

The unsecured creditors committee, which also includes Boeing Co. (BA) and banks acting for bondholders, represents those owed money by American when it sought court protection. It will have a say in major decisions made by American outside of normal business while the carrier is in bankruptcy, including whether to shrink in size, terminate its pensions or merge with another airline.

“I find it surprising that all three unions made it on a nine-person committee,” said Eric Smith, an attorney with Schnader Harrison Segal & Lewis LLP in Pittsburgh who has taken part in previous airline bankruptcy cases. “The driving force behind this filing is the labor issues.”

Labor is “a critical component of every airline,” Smith said. “That’s the calculus the trustee went through in putting them on the committee. You don’t want some major union left out.”

This is some welcome news knowing our Union's will have three of the nine seats available....

 

[FWAAA]

Well, it's good news that the APA and the APFA are represented, but it's too bad that fleet and the mechanics lack representation on the committee. Who will speak for them?

 

[Tex-Mech]

Well, it's good news that the APA and the APFA are represented, but it's too bad that fleet and the mechanics lack representation on the committee. Who will speak for them?

This should answer that question.
http://www.youtube.com/watch?v=sZLkEuYt_bc

 

[High Speed Steel]

Well, it's good news that the APA and the APFA are represented, but it's too bad that fleet and the mechanics lack representation on the committee. Who will speak for them?

It will be the TWU representing their members on the creditors committee...

 

[FWAAA]

It will be the TWU representing their members on the creditors committee...

That's a good one.

I'm certain that the TWU will adequately represent the TWU's interests, but my question remains: Who will represent the employees in fleet and maintenance?

 

[High Speed Steel]

That's a good one.

I'm certain that the TWU will adequately represent the TWU's interests, but my question remains: Who will represent the employees in fleet and maintenance?

No one has been named as yet to my knowledge only that the TWU has secured a seat on the creditors committee, sorry but if your fishing for "Who" then I can't answer that....

 

[FrequentFlierCA]

Unions on the Creditors' Committee strikes me as letting the fox guard the hen house.

 

[787nightmare]

Can you imagine the eyes rolling, heads wagging back/forth accompanied with snickers.

"The American employees place there hope & trust IN THEM?"...(see above, immediately followed response).

 

[Jacobin777]

Unions on the Creditors' Committee strikes me as letting the fox guard the hen house.

A bit less than that though. They will have 3 board seats but these are on the non-secure credit committee. Its certainly much better than not having any representation, but in the end, it will be all about "dollars and cents". Once the secured creditors get their "fair share" then the rest will be divided amongst the non-secured credit committee. My guess is that issued stock will be given.

 

[Buck]

A bit less than that though. They will have 3 board seats but these are on the non-secure credit committee. Its certainly much better than not having any representation, but in the end, it will be all about "dollars and cents". Once the secured creditors get their "fair share" then the rest will be divided amongst the non-secured credit committee. My guess is that issued stock will be given.

When referring to the "issued stock", is that existing shares or shares that will be reissued under a new ticker, making current shares kaput?

 

[FWAAA]

Even if Jacob isn't talking about new stock (following cancellation of the old stock), the correct answer is new stock.

Existing AMR common stock will be cancelled when AMR exits from bankruptcy protection.

 

[RevThruster]

Even if Jacob isn't talking about new stock (following cancellation of the old stock), the correct answer is new stock.

Existing AMR common stock will be cancelled when AMR exits from bankruptcy protection.

Or be issued new stock under LCC -

 

[FWAAA]

Or be issued new stock under LCC -

Could be. Either way, it won't be the old stock, since that will be cancelled in either case.

 

[Buck]

Even if Jacob isn't talking about new stock (following cancellation of the old stock), the correct answer is new stock.

Existing AMR common stock will be cancelled when AMR exits from bankruptcy protection.

Not doubting you or anyone else, but how sure are you that the current common stock will be cancelled when AMR exits bankruptcy? Could it be cancelled sooner?

How common is it for a company to issue new shares to existing shareholders?

 

[FWAAA]

Not doubting you or anyone else, but how sure are you that the current common stock will be cancelled when AMR exits bankruptcy? Could it be cancelled sooner?

I'm certain that the stock will be canceled upon confirmation of the POR and exit from bankruptcy. Don't know if it could be cancelled sooner, but I doubt it would be.

How common is it for a company to issue new shares to existing shareholders?

Extremely rare. Generally, existing stockholders get a dividend (as in money or new stock) only if all superior creditor classes are fully compensated. And that ain't gonna happen. Every other airline that filed for Ch 11 during the past decade cancelled the old stock when they emerged from bankruptcy.