US-AA Merger Articles (Merged Topics)

[CallawayGolf]

Clever? Why would they need to waste a million?, They already bought 3 unions, Any one of those 3 unions accounting team could have gotten that info to DUI, unless he feels his deal with those unions falling apart, which it is! MM

My guess is that one or more of the unsecured creditors on the committee encouraged LCC to pick up enough of AMR's debt so that there could be an unfiltered exchange of information between what the UCC gets and what US is legally permitted to have access to. It's all part of the process of making sure the LCC proposal has a better counter-offer to whatever AMR/Horton presents. No reason to blindly throw proposals around when you can specifically target and one up the best and final offer AMR is able to make.

 

[etops1]

I figure , if it wasn't such a big deal AMR wouldn't be so upset about it .

 

[700UW]

The unions at AA couldnt by law give confidential financial information to US, that is a major SEC and Sarbanes-Oxley violation.

 

[AAviator]

Dougie ran out of roof tops to shout from..

I must admit, the obsessiveness of some is sort of flattering... 🙂

 

[FWAAA]

Your right Jim but it will let US in on AA's numbers . Which is wat they have been trying to get from AA. Clever move . You can't deny that .

No, that's false. Buying the debt and filing the statement agreeing with the extension of the exclusivity period only means that US is a creditor, just like I am. Buying the debt just enables Parker to file "Look at US, we're still relevant!" statements like the one agreeing to the exclusivity extension.

US will get access to AA's numbers because US is one of the five airlines with which AA will "discuss" a possible merger. So will F9, B6, VX and AS.

 

[CallawayGolf]

No, that's false. Buying the debt and filing the statement agreeing with the extension of the exclusivity period only means that US is a creditor, just like I am. Buying the debt just enables Parker to file "Look at US, we're still relevant!" statements like the one agreeing to the exclusivity extension.

US will get access to AA's numbers because US is one of the five airlines with which AA will "discuss" a possible merger. So will F9, B6, VX and AS.

That's not exactly an apples to apples statement. You may well be a creditor of AMR, but you have a bargaining agent representing you at the UCC table. The information you get either comes from your representative agent, or it comes through channels open to the general public. By law, the UCC is the representative group for all unsecured creditors which means LCC now has that group representing their financial interests on their unsecured debt with AMR. So LCC will get whatever information one of their UCC representatives gives them (like you with your agent) so long as sharing that information isn't a violation of the law or the parameters established by the bankruptcy judge. You can only ask your bargaining agent for information, but LCC can get information from any willing party on the UCC. Note I'm not saying that's what's happening here, I'm just saying that your role vs. LCC's role as an unsecured creditor are not entirely analogous.

 

[FWAAA]

That's not exactly an apples to apples statement. You may well be a creditor of AMR, but you have a bargaining agent representing you at the UCC table. The information you get either comes from your representative agent, or it comes through channels open to the general public. By law, the UCC is the representative group for all unsecured creditors which means LCC now has that group representing their financial interests on their unsecured debt with AMR. So LCC will get whatever information one of their UCC representatives gives them (like you with your agent) so long as sharing that information isn't a violation of the law or the parameters established by the bankruptcy judge. You can only ask your bargaining agent for information, but LCC can get information from any willing party on the UCC. Note I'm not saying that's what's happening here, I'm just saying that your role vs. LCC's role as an unsecured creditor are not entirely analogous.

You're completely incorrect about my role as a creditor; as I am not represented by the APA, the TWU nor the APFA, my role as a creditor is exactly the same as US Airways' role as a creditor. I have no bargaining agent on the UCC but I do have the same status with the UCC as does US. We both own some of AMR's publicly traded debt and thus, we're both unsecured creditors and claimants.

 

[Phoenix]

Here's my prediction .... AA and US will merge soon, one way or another.
AA employees will lose their defined pension plan and retirement healthcare plan first.
Horton and Parker will get rich at your expense ...... 😉.

The customers too will probably have their opportunity to see how the rosy pictures, painted by Parker, may fade a little faster than expected.

 

[CallawayGolf]

You're completely incorrect about my role as a creditor; as I am not represented by the APA, the TWU nor the APFA, my role as a creditor is exactly the same as US Airways' role as a creditor. I have no bargaining agent on the UCC but I do have the same status with the UCC as does US. We both own some of AMR's publicly traded debt and thus, we're both unsecured creditors and claimants.

My apologies. I was under the impression you were making a claim to have debt as part of a represented group. If you have a direct relationship with the UCC via a personal claim then obviously you hold similar status to LCC.

Perhaps there is still a difference though. Do you have direct communication with members of the UCC and are any of them under the impression that you will be making a counter proposal to AMR's stand-alone plan that will yield a strong financial offset to their at-risk claims against AMR? According to news reports Doug has met with members of the UCC and has stated on multiple occasions that he believes his merger plan creates far more value for the UCC and post-emergence shareholders than a stand-alone plan. Do you think that those things afford Doug a bit more leverage and communication opportunities with the UCC than you are afforded as a individual creditor?

 

[BoeingBoy]

FWAA is right, this investment won't give US any info not available to any other unsecured creditor. US will still see the POR when everyone else does - when it's filed with the court.

If US really wants to see AA's numbers all it has to do is sign the agreement offered to the other four carriers plus outside investors that express interest, but that would mean that AA would also get a look at US' numbers and maybe that's what Parker is really afraid of.

Jim

 

[FWAAA]

Here is a pretty good article with different points of view about what Parker gets as a result of this "investment:"

http://www.bloomberg.com/news/2012-07-13/us-airways-gets-voice-in-amr-bankruptcy-by-buying-debt.html?cmpid=yhoo

Parker can probably get an audience with the UCC whenever he demands - and of course I cannot, but his powers to speak to the UCC have nothing to do with this debt.

 

[AAviator]

Interesting: Ray Neidl has changed his tune a bit. He's always been one of the most vocal advocates about an AA+LCC combination, but lateley he's been talking about post BK options, and AA being OK as a stand alone..

From McNews

Analysts say American could remain a stand-alone company if it forged more regional and mainline code-share partnerships to fly into cities not on its route map. But if it merges, US Airways is probably the best option, says Ray Neidl, an airline analyst at the Maxim Group. A merger with Delta would not get Department of Justice antitrust approval, and niche carriers such as Alaska Airlines have cultures that wouldn't mix well with American, he says.


http://www.usatoday....ican/56154848/1

 

[AAviator]

It may or may not happen.. I hope for the sake of AA's employees that it doesn't.

 

[jimntx]

Have a friend here in Dallas who is a senior US East flight attendant. His comment was "God, I hope you all don't get pulled into this mess over here."

On another note...
Heard a rumor that JB and AK have already told AMR to stick their merger where the sun don't shine. Any confirmation on this? I've been flying for the past 3 days.

 

[luvthe9]

It may or may not happen.. I hope for the sake of AA's employees that it doesn't.

And we hope for the sake of US employees it does not happen also, that's why I can't understand why the APA pilots don't oppose this merge. they really need to man up.