We Already Gave! Concession Stand Closed!

[MCORORES]

The bottom line here if the company shuts its doors, WE ALL will have to adjust to a new work and lifestyle. Imagine that...all work groups actually and almost equal. I do think it is ironic that the real junior and real senior employees in my group more than likely will do anything to keep there jobs...and that is fine. Everyone does have the right to there own opinion. The employees that are middle seniority and is where the majority of the work force is the attitude is totally different. Cannot blame them there also since I am one of those middle seniorty people.

 

[EyeInTheSky]

MCORORES, you gotta do what you gotta do. Everyone needs to respect that. Unfortunately, with today's S&P downgrade, I fully expect US Airways to again file Chapter 11 and totally start over with new contracts. In short, senority won't matter, everybody that wants to come back will get a new DOH. It's going to be a big ole' mess.

 

[700UW]

They can't file chapter 11, ATSB loan has to be paid off in full causing a chapter 7 filing.

 

[robbedagain]

They can't file chapter 11, ATSB loan has to be paid off in full causing a chapter 7 filing.

if they have 978million in the bank (according to the rating sp agency) what if they paid the remaining 726million then filed bankrupt to fix the problem would that work or no?

 

[Art at ISP]

Also, if I am not mistaken, they cannot use a Chapter 11 to abrogate labor contracts---Congress passed a law to stop that after Lorenzo.

Admittedly things do not look good, but anything is possible.

My best to you all.....

 

[700UW]

Also, if I am not mistaken, they cannot use a Chapter 11 to abrogate labor contracts---Congress passed a law to stop that after Lorenzo.

Admittedly things do not look good, but anything is possible.

My best to you all.....

Yes they still can but section 1113 was enacted to make it a process instead of just the company requesting it.

Levine started her presentation with an overview of bankruptcy. The main goal of bankruptcy is to relieve a debtor of debts, thereby providing an opportunity for a fresh start. Bankruptcy also benefits creditors by providing a forum for an orderly liquidation of a debtor’s estate or a judicially scrutinized plan for full or partial repayment of creditor, and protecting unsecured creditors from preferential or fraudulent transfers of the debtor’s property and requiring adequate protection of secured creditor’s collateral.

There are two types of filling, Chapter 7, Liquidation and Chapter 11, Reorganization.

Levine continued, explaining the two types, but described Chapter 11 filings in depth. She explained the process and enlightened the attendees on all aspects of a chapter 11 filing. One thing that has stuck out in the US Airways members was a term called Fraudulent Conveyance.

Fraudulent Conveyance: A transfer of the debtor’s property is fraudulent if, made with the actual intent to hinder, delay, or defraud a creditor. (Note that sometimes the debtor’s actual intent maybe inferred circumstantially by certain “badges of fraud.†Alternatively, a debtor receives less than the reasonably equivalent value and was insolvent at the time of the transfer or became insolvent because of it or had “unreasonably small capital†remaining after the transfer for its business operations or intends to incur debts that it will be unable to repay as they mature. Many of the US Airways members asked hard-hitting questions about this as US Airways sold off airplanes and parts for less then fair market value not too long ago.

Our United attendees asked assertive questions in regards to the ESOP stock, numerous assets that United owns, and the ramifications on how they would be affected if United decided to file.

Levine also went over all the procedures and steps in the bankruptcy codes. One item she covered in depth is the 1113 letter, which refers to the section of code that ensures that a company negotiates with the union before they seek abrogation of the labor agreement. When a company seeks protection, the agreement remains in effect. When a union negotiates an 1113 letter it secures an agreement with the company showing that the company will not seek further cuts from labor. To this date, no company that has had an 1113 letter negotiated has ever asked the court to abrogate it.

Companies that request abrogation of the labor agreement but it must meet the following nine (9) distinct requirements:

1. The debtor in possession must have made a proposal to the union.
2. The proposal must be based upon the most complete and reliable information available at the time of the proposal.
3. The modification must be necessary to permit reorganization.
4. The modification must provide that all affected parties be treated fairly and equitably.
5. The debtor must provide the union with such relevant information as is necessary to evaluate the proposal.
6. The debtor must have met with the collective bargaining representative at the reasonable times subsequent to making the proposal.
7. The debtor must have negotiated with the union concerning the proposal in good faith.
8. The union must have refused to accept the proposal with good cause.
9. The balance of the equities must clearly favor rejection of the agreement.

Levine also noted that bankruptcy is not the preferred course for your contract.