www.justplanenews.com has an article that the judge has cleared tom horton to receive his 20 mill angerng the trustee
tom horton 20 mill approved
- Thread starter robbedagain
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eolesen
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Morally bankrupt?...
1) The unions and other creditors on the creditors committee all agreed to this, and there was no proverbial gun to their heads. Absent this, Horton could have remained non-executive Chairman post-merger. But, Doug's ego and the unions would have nothing of that.
2) It's still not approved by the shareholders and debtors, but they're getting paid 100% of their claims, so they don't lose anything from this, and there was no precedent for creditors to be paid at 102% of their claims...
3) Employees will obviously piss and moan, but again, you're who negotiated and agreed to a tentative deal with Doug Parker long before you completed a deal with AMR. And Doug Parker's post-merger compensation stands to be as rich as (if not more than) Horton's exit compensation.
This *is* what *you* asked for.
1) The unions and other creditors on the creditors committee all agreed to this, and there was no proverbial gun to their heads. Absent this, Horton could have remained non-executive Chairman post-merger. But, Doug's ego and the unions would have nothing of that.
2) It's still not approved by the shareholders and debtors, but they're getting paid 100% of their claims, so they don't lose anything from this, and there was no precedent for creditors to be paid at 102% of their claims...
3) Employees will obviously piss and moan, but again, you're who negotiated and agreed to a tentative deal with Doug Parker long before you completed a deal with AMR. And Doug Parker's post-merger compensation stands to be as rich as (if not more than) Horton's exit compensation.
This *is* what *you* asked for.
OP
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e from what i read in that article i think the unions have to vote on that before long...
eolesen
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Assuming the unions put it out for a member vote, and everyone votes, that's still just 30% of the creditor vote, and what I'd guess is far less than 5% of the shareholder vote (assuming some individuals still hold shares and exercise their rights).
It all comes down to economic gravity. Creditors are being made whole (a rarity in bankruptcies), and even shareholders are being thrown new equity (even rarer).
Frankly, there's nothing else not to like in the restructuring plan, except for Horton's exit package, and that is only an issue to the employees and the few bloggers who write about corporate greed.
Some creditors will be made whole, the rich and powerful ones and you are right there is nothing for them not to like, but plenty for the only creditors that are getting screwed, the employees. Nothing will happen and thats too bad, thats why it happens. If all of sudden thousands of Airline workers stopped going to work for a few days in protest then these Judges and Lawmakers might think twice about doing things like this. look at the double standards, the law says that workers under the RLA can strike if their contract is abrogated yet a Judge twists things around and basically claims that BK annuls a contract if its an airline, where did he come up with that? He made it up. Then lawmakers in reaction to public outrage over how executives were getting rich taking companies into BK put a limit on compensation but another Judge decides to make up rules again and claim that despite the law, and its crystal clear intent that the limits do not apply.
Is such a form of government worth dying for? Jackie Chan was right, America is the most corrupt government in the world.
eolesen
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S.1167 explicitly only applies to railroad employees, even though airline employees covered by the RLA.
Nothing stops airline employees from lobbying to be removed from the RLA. That would free you to strike without cooling off periods, and upon abrogation. But y'all seem to be too afraid of the ramifications of an open shop and loss of union dues from compulsory membership.
Nothing stops airline employees from lobbying to be removed from the RLA. That would free you to strike without cooling off periods, and upon abrogation. But y'all seem to be too afraid of the ramifications of an open shop and loss of union dues from compulsory membership.
BigMac
Veteran
So T.H. is getting $20 mil plus was given a spot on the new AA/US board? Hell of a deal. Where do we sign up for that job?
