ALPA MEC CODE-A-PHONE UPDATE - August 9, 2005
This is Jack Stephan with a US Airways MEC update for Tuesday, August 9th, with one new item.
Today in Bankruptcy Court, Judge Stephen Mitchell approved US Airways’ amended Disclosure Statement with respect to the Joint Plan of Reorganization. Over the weekend, ALPA was successful in obtaining additional language amending the disclosure statement that resolves the disclosure objections we previously filed. Recall that our objections to the original disclosure statement pertained to insufficient information provided in the original statement, as well as our position on particular issues such as a Board Seat, Equity, and Profit Sharing. The basis for these and other objections to the Plan is now described in detail in the new language that ALPA provided. This additional language, found in Section VIII E 3, describes the positions of ALPA and the other unions on various provisions of the Joint Plan of Reorganization. It also still preserves the right of ALPA and other unions to object to various provisions of the Joint Plan of Reorganization at the confirmation hearing which is scheduled for September 15th, with objections due on September the 12th. The Joint Plan, amended disclosure statement, and exhibits are available under "What's New" on the pilots only homepage.
Some of the highlights of the Joint Plan of Reorganization are:
Section 7.21 - reference to the management equity plan
Section 8.1(B) - provision for assumption of contracts with individual Airways executives (thereby implementing the contracts the judge refused to approve earlier); also modifies the language dealing with CBAs, eliminating language that could be read to eliminate grievances and other claims or subject them to unsecured status, instead leaving them to be treated as provided by law; also modifies prior reservation of right to move to reject CBAs, saying no rejection if Plan confirmedÂ
Section 11.2 - provision modifying discharge of debtors to remove references to employee claimsÂ
Section 11.9 - indemnification provision amended to add reference to possible assumption of indemnification obligations under Section 8.1
Some Disclosure Statement Highlights:
Section II.F.1 - short statement on future plans for Piedmont, PSA
Section VIII.C.6 - description of contracts with executives
Section VIII.C.7 - description of executive equity plan
Section VIII.E.2. - description of treatment of CBAs, executive contracts
Section VIII.E.3. - Description of ALPA, union views of Plan issues
Pilots should note that the language used in this particular section came largely from ALPA's language from our original Disclosure Statement objection.
Section VIII.E.6. - description of executive contracts
Exhibit U-6 - list of Airways executives whose contracts will be assumed.
The approval of the Disclosure Statement today paves the way for US Airways to solicit votes from its creditors in favor of its POR, one of the final steps necessary for the Company to emerge from Chapter 11 and complete its merger with America West in late September/early October. Judge Mitchell authorized US Airways to distribute both the POR and Disclosure Statement to its creditors for a confirmation vote. The hearing on the confirmation of the POR is scheduled for September 15. September 12 is the deadline for receipt of ballots on the POR and to file objections in the bankruptcy court for confirmation of the POR. US Airways also issued a press release today commenting on the Court's actions that is available on the pilots only web site under "What's New."
Please remember we now have 1,574 pilots on furlough with approximately 400 pilots currently working at MDA or Jets For Jobs carriers.
Thank you for listening.
This is Jack Stephan with a US Airways MEC update for Tuesday, August 9th, with one new item.
Today in Bankruptcy Court, Judge Stephen Mitchell approved US Airways’ amended Disclosure Statement with respect to the Joint Plan of Reorganization. Over the weekend, ALPA was successful in obtaining additional language amending the disclosure statement that resolves the disclosure objections we previously filed. Recall that our objections to the original disclosure statement pertained to insufficient information provided in the original statement, as well as our position on particular issues such as a Board Seat, Equity, and Profit Sharing. The basis for these and other objections to the Plan is now described in detail in the new language that ALPA provided. This additional language, found in Section VIII E 3, describes the positions of ALPA and the other unions on various provisions of the Joint Plan of Reorganization. It also still preserves the right of ALPA and other unions to object to various provisions of the Joint Plan of Reorganization at the confirmation hearing which is scheduled for September 15th, with objections due on September the 12th. The Joint Plan, amended disclosure statement, and exhibits are available under "What's New" on the pilots only homepage.
Some of the highlights of the Joint Plan of Reorganization are:
Section 7.21 - reference to the management equity plan
Section 8.1(B) - provision for assumption of contracts with individual Airways executives (thereby implementing the contracts the judge refused to approve earlier); also modifies the language dealing with CBAs, eliminating language that could be read to eliminate grievances and other claims or subject them to unsecured status, instead leaving them to be treated as provided by law; also modifies prior reservation of right to move to reject CBAs, saying no rejection if Plan confirmedÂ
Section 11.2 - provision modifying discharge of debtors to remove references to employee claimsÂ
Section 11.9 - indemnification provision amended to add reference to possible assumption of indemnification obligations under Section 8.1
Some Disclosure Statement Highlights:
Section II.F.1 - short statement on future plans for Piedmont, PSA
Section VIII.C.6 - description of contracts with executives
Section VIII.C.7 - description of executive equity plan
Section VIII.E.2. - description of treatment of CBAs, executive contracts
Section VIII.E.3. - Description of ALPA, union views of Plan issues
Pilots should note that the language used in this particular section came largely from ALPA's language from our original Disclosure Statement objection.
Section VIII.E.6. - description of executive contracts
Exhibit U-6 - list of Airways executives whose contracts will be assumed.
The approval of the Disclosure Statement today paves the way for US Airways to solicit votes from its creditors in favor of its POR, one of the final steps necessary for the Company to emerge from Chapter 11 and complete its merger with America West in late September/early October. Judge Mitchell authorized US Airways to distribute both the POR and Disclosure Statement to its creditors for a confirmation vote. The hearing on the confirmation of the POR is scheduled for September 15. September 12 is the deadline for receipt of ballots on the POR and to file objections in the bankruptcy court for confirmation of the POR. US Airways also issued a press release today commenting on the Court's actions that is available on the pilots only web site under "What's New."
Please remember we now have 1,574 pilots on furlough with approximately 400 pilots currently working at MDA or Jets For Jobs carriers.
Thank you for listening.
