- Dec 21, 2002
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TWU professional fees paid for in jeopardy!
- Thread starter Hopeful
- Start date
1AA
Veteran
Bankruptcy trustee objects to agreement to pay unions’ professional fees
http://aviationblog.dallasnews.com/2012/09/bankruptcy-trustee-objects-to-agreement-to-pay-unions-professional-fees.html/
The U.S. bankruptcy trustee is objecting to American Airlines’ agreement to pay professional fees incurred by the Transport Workers Union and Association of Professional Flight Attendants.
In a limited objection to new contracts approved by TWU and APFA members, U.S. Trustee Tracy Hope Davis said those fees and expenses should undergo the same scrutiny as those incurred by others involved in the bankruptcy case of American and parent AMR.
“The Court should not permit its independent duty to review fees, the statutory review duty of the United States Trustee, and the review rights of other parties in interest, to be bargained away under the guise” of federal bankruptcy rules or laws, the trustee wrote.
U.S. Bankruptcy Judge Sean Lane is scheduled at 10 a.m. EDT Wednesday, Sept. 12, to hear American’s motion to approve new collective bargaining agreements between American and the two unions.
The trustee’s filing Wednesday said American has agreed to pay “the actual reasonable fees and expenses (including attorneys, experts and financial advisors) incurred,” up to $5 million for each union. In addition, American had agreed to pay up to $2 million in fees and expenses for the APFA’s investment bankers.
Click the link to read full story.
http://aviationblog.dallasnews.com/2012/09/bankruptcy-trustee-objects-to-agreement-to-pay-unions-professional-fees.html/
The U.S. bankruptcy trustee is objecting to American Airlines’ agreement to pay professional fees incurred by the Transport Workers Union and Association of Professional Flight Attendants.
In a limited objection to new contracts approved by TWU and APFA members, U.S. Trustee Tracy Hope Davis said those fees and expenses should undergo the same scrutiny as those incurred by others involved in the bankruptcy case of American and parent AMR.
“The Court should not permit its independent duty to review fees, the statutory review duty of the United States Trustee, and the review rights of other parties in interest, to be bargained away under the guise” of federal bankruptcy rules or laws, the trustee wrote.
U.S. Bankruptcy Judge Sean Lane is scheduled at 10 a.m. EDT Wednesday, Sept. 12, to hear American’s motion to approve new collective bargaining agreements between American and the two unions.
The trustee’s filing Wednesday said American has agreed to pay “the actual reasonable fees and expenses (including attorneys, experts and financial advisors) incurred,” up to $5 million for each union. In addition, American had agreed to pay up to $2 million in fees and expenses for the APFA’s investment bankers.
Click the link to read full story.
1AA
Veteran
So since the TWU International was influenced to vote YES by the company for paying their legal fees and now it looks like it might not happen can we get a revote?
1AA
Veteran
I think all trustee is saying is they won't pay unsubstantiated fees & expenses, which makes perfect sense. What is unclear about the caps on these fees is not just the total amount, but when they are no longer covered. By this I refer to once the 1113 proceedings are complete, and either a consensual contract or abrogation is reached, whether any further costs are eligible. That is not a big deal for those with consensual contracts, but might be a "brick" in APA's backpack.
The Trustee simply wants the unions' fees to be examined in the same manner as all other professional fee requests so that it can scrutinize each and every entry to determine if the work added value to the bankruptcy estate.
Might have been a better idea for AA to agree to an unsecured claim that was a tenth of a percentage point or two more than it did (4.9% or 5.0% for the TWU instead of the 4.8%) with a wink that the TWU could pay its own bills off the top from that claim before it distributed the remainder to the membership. Same with the APFA and the APA (if the APA reaches agreement).
If this causes things to be derailed, then I gotta wonder whether Harvey Miller and gang have been asleep at the switch or whether they advised Horton properly and Horton did it anyway. Same thing with the screw-up of the pilot term sheet. Did Horton put the unlimited codesharing and furlough changes in the term sheet against the advice of counsel or did Harvey Miller and his partners completely miss the issue?
Might have been a better idea for AA to agree to an unsecured claim that was a tenth of a percentage point or two more than it did (4.9% or 5.0% for the TWU instead of the 4.8%) with a wink that the TWU could pay its own bills off the top from that claim before it distributed the remainder to the membership. Same with the APFA and the APA (if the APA reaches agreement).
If this causes things to be derailed, then I gotta wonder whether Harvey Miller and gang have been asleep at the switch or whether they advised Horton properly and Horton did it anyway. Same thing with the screw-up of the pilot term sheet. Did Horton put the unlimited codesharing and furlough changes in the term sheet against the advice of counsel or did Harvey Miller and his partners completely miss the issue?
Dude! Where do you get that the TWU is going to be "distributed the remainder to the membership?" The TWU has yet---I repeat, has YET explained how they will do anything with the 4.8% equity being givin to them. This in itself should have produced a "NO" vote from the membership. The TWU is going to keep it for themselves, you watch and learn.
If you guys were AMFA, the membership would deside how the equity for the union conssesions, as well as the equity stake would be handled, NOT the National of AMFA. Wake up dude, get a clue man, come to a realization that you all are in a pretend bubble that is fixin to burst if you keep the TWU, and comepletely explode if you all go with the teamsters... Show us all "in writing" where the TWU will distribute any of the 4.8% equity thru-out the membership. Show me. Prove me wrong.
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