With no merger, what happens to my shares ?
- Thread starter Barfbag
- Start date
Which ones? Are you talking about the existing old AAMRQ (pre-bankruptcy stock)? If so, they'll probably still get some value under a new POR (without the merger).
Are you talking about the equity stake the unions were given in the POR (new stock)? You'll still get those. IMO, they may be more valuable since no merger means the LCC stockholders won't be taking some of your money. The 28% given to the LCC stockholders was too high, in my view. Instead of getting a percentage of 72% of the new AA, you'll get that percentage of 100% of the new AA.
- Thread Starter
- Thread starter
- #4
Thanks. I was scared.. I can still order my Viagra as scheduled.
Keroseneuser
Veteran
- Aug 9, 2011
- 860
- 645
I am under the impression that AA POR is entirely predicated on the merger happening. For us on the USAirways side if it fails it just means that we continue as we were and continue to work out our AWA/US merger mess. However for the AA side the way I read it is that your POR is now null since all UCC approvals etc is predicated on the merger. How is your POR stuff written? Does it kick in regardless of the merger or if the merger fails are you guy back to square one? Last I remember prior to the merger stuff AA did not have a POR that was considered viable by the BK court and all parties involved. Are you guys going to have to go back and revisit pay, work rules, retirement etc?
You must have missed the part of the first paragraph of mine that you quoted where I wrote "If so, they'll probably still get some value under a new POR (without the merger)."
See the part about a new POR? One without the merger? If there is no merger, then management will have to write a new Plan of Reorganization and get creditor approval.
Renegotiate pay and work rules? No. Those were not part of the POR; those have been settled with AA employees.
Keroseneuser
Veteran
- Aug 9, 2011
- 860
- 645
Ah, Ok. I thought the pay and work rules still needed BK court approval etc. by the time the merger was announced. Was under the impression that the stuff that was agreed on for the POR was the pay rates that Parker had come up with after the merger negotiations with the unions. So all AA still needs if the merger fails is to make the BK court and investors happy. What was left that needed to be done to get them to sign off on a stand alone POR?
No, that's not correct. The plan of reorganization contemplates a merger that closes when the POR is confirmed. They are inextricably linked.
Now that the DoJ has sued to block the merger, this week's hearing on the POR will be delayed. There is nothing in the current POR about AA emerging from bankruptcy on its own - only part and parcel to a merger with US.
When the merger is ultimately abandoned or the court rules in favor of the DoJ, then a new plan of reorganization will be prepared and creditor approval obtained.
AA cannot emerge from bankruptcy until the POR is confirmed, and the only POR in front of the court contains a merger with US (which has been blocked by the government). Bottom line: AA stays in Ch 11 until they give up on Parker's impossible dream and circulate a new POR.
AANOTOK
Veteran
- Oct 10, 2009
- 4,627
- 2,242
"if the US Airways/AMR deal were to be permanently blocked, AMR would need to address its issues on the standalone basis, likely through capacity and headcount reductions. AMR needs to address its operations in LA and the overall network, which would result in capacity reductions and higher ticket fares. Worst case scenario, AMR would need to liquidate, resulting in significant capacity and headcount reduction. In any scenario, we believe the capacity reductions would benefit the entire industry and result in improved supply/demand environment and PRASM trends.”
Thanks for clearing that up. I'm ok if it falls apart. I'm ready to give it a shot as a stand alone. This was also a pilot dream, not mine.
eolesen
Veteran
- Jul 23, 2003
- 15,959
- 9,374
There's another wildcard, guys.
It would appear the 18 month exclusivity clause is now expired.
By the letter of the law, it would appear an unsolicited and competing bid can be submitted by outside parties, e.g. Indigo or TPG.
That would potentially make your shares a whole lot more valuable.
It would appear the 18 month exclusivity clause is now expired.
By the letter of the law, it would appear an unsolicited and competing bid can be submitted by outside parties, e.g. Indigo or TPG.
That would potentially make your shares a whole lot more valuable.
Why do you post false information? You're wrong. Of course, if you're in the sandcastle in Tempe, yesterday's revelations in the DoJ complaint might answer that question.
AA reached non-merger (ie, stand-alone) labor deals with every work group last year prior to the forced marriage with US. The pilots were the last to ratify and the bankruptcy court approved them in December.
