American Airlines Seeks More Time (Merged Threads)

[usa1]

American Airlines & Co. seek more time to file a plan of reorganization

http://aviationblog.dallasnews.com/2013/01/american-airlines-co-seek-more-time-to-file-a-plan-of-reorganization.html/

“American has made significant progress in its restructuring,” American spokesman Sean Collins said Thursday evening. “This work, while progressing well, takes time, and American and the unsecured creditors’ committee believe that the proposed extension to April 15, 2013, is appropriate for this process to continue in an orderly and efficient manner.”

 

[WorldTraveler]

Emerging in 18 months was always about as fast as could reasonably be expected in an airline merger. No one has done it faster than that and managed to stay out.

 

[eolesen]

I'm still wondering if AMR finds ground to challenge the 18-20 month cap on exclusivity.

It's never been tested in court before, and seems to have been an arbitrary number that nobody really justified as reasonable or practical.

 

[FWAAA]

I'm still wondering if AMR finds ground to challenge the 18-20 month cap on exclusivity.

It's never been tested in court before, and seems to have been an arbitrary number that nobody really justified as reasonable or practical.

Agreed. AA has already introduced evidence (during the 1113 motions) that might tend to support granting further extensions. Things like the APA and APFA leaders were meeting with Doug Parker last spring to negotiate transition agreements during the time AA expected them to be negotiating over the 1113 term sheets.

With the 2005 changes in the bankruptcy law setting such restrictive timetables (which appear to be arbitrary), Parker's actions, which delayed the resolution of the labor cost reduction, could be characterized as tortious interference with AA's restructuring.

Continuing with the equities arguments, an argument could be made that US has unclean hands if it were to insist that AA's exclusivity extensions should be denied and that US should be permitted to put forth its POR. AA could argue that were it not for Parker's interference in early 2012, the extensions would not be required. Congress certainly didn't intend for competitors to be able to disrupt and delay a reorganization to its benefit when it set those arbitrary limits - it was a clear reaction to the UAL 3 year bankruptcy odyssey.

 

[Bob Owens]

Agreed. AA has already introduced evidence (during the 1113 motions) that might tend to support granting further extensions. Things like the APA and APFA leaders were meeting with Doug Parker last spring to negotiate transition agreements during the time AA expected them to be negotiating over the 1113 term sheets.

With the 2005 changes in the bankruptcy law setting such restrictive timetables (which appear to be arbitrary), Parker's actions, which delayed the resolution of the labor cost reduction, could be characterized as tortious interference with AA's restructuring.

Continuing with the equities arguments, an argument could be made that US has unclean hands if it were to insist that AA's exclusivity extensions should be denied and that US should be permitted to put forth its POR. AA could argue that were it not for Parker's interference in early 2012, the extensions would not be required. Congress certainly didn't intend for competitors to be able to disrupt and delay a reorganization to its benefit when it set those arbitrary limits - it was a clear reaction to the UAL 3 year bankruptcy odyssey.

Would be a weak arguement, its not as if the company was willing to meet till a deal was done, they basically threw a take it or leave it offer on the table. They never really met with Line maintenence. The only thing they discussed with us was OT and FT rules, nothing else despite the fact that we were there. In fact we walked up to Ream to try and discuss line issues and Ream said "We are done with you" turned his back on us and walked away.

 

[FWAAA]

Would be a weak arguement, its not as if the company was willing to meet till a deal was done, they basically threw a take it or leave it offer on the table. They never really met with Line maintenence. The only thing they discussed with us was OT and FT rules, nothing else despite the fact that we were there. In fact we walked up to Ream to try and discuss line issues and Ream said "We are done with you" turned his back on us and walked away.

With very little respect, what the hell do you know about the strength of untested, novel legal arguments? You're an airframe and powerplant expert. Let me know when a court or government agency accepts your legal arguments, changes their precedent and thus, your client wins.

As usual, your post reflects your limited universe as you focus on the TWU, which I didn't even mention, as the TWU settled its new contracts relatively early compared to the pilots and FAs. In fact, even the holdouts, the mechanics, ratified before either the pilots or FAs. My argument didn't mention the TWU because my argument doesn't rely on what the TWU did or did not do. My arguments revolve primarily around the APA and APFA, and AA introduced plenty of evidence that their leadership were cuddling with Doug Parker instead of meeting with AA negotiators.

 

[TWU informer]

What AMR will ask of Judge Lane, AMR gets.

 

[Bob Owens]

With very little respect, what the hell do you know about the strength of untested, novel legal arguments? You're an airframe and powerplant expert. Let me know when a court or government agency accepts your legal arguments, changes their precedent and thus, your client wins.

As usual, your post reflects your limited universe as you focus on the TWU, which I didn't even mention, as the TWU settled its new contracts relatively early compared to the pilots and FAs. In fact, even the holdouts, the mechanics, ratified before either the pilots or FAs. My argument didn't mention the TWU because my argument doesn't rely on what the TWU did or did not do. My arguments revolve primarily around the APA and APFA, and AA introduced plenty of evidence that their leadership were cuddling with Doug Parker instead of meeting with AA negotiators.

Generally speaking laws are rules that people are supposed to obey, and should follow common sense, then again maybe you are right.

Your arguements assume that if they were not meeting with US that they would have been meeting with AA. It could be argued that if not for meeting with US that both of those groups would still be without a contract as the pilots and APFA have been pretty clear (the TWU as well) that they are going into these agreements solely to help get the USAIR deal done faster, they voted yes as a means of getting rid of Horton, not as an endorsment of the plan. With both of those groups didnt they have seperate negotiating committees while a different group met with US?? The TWU has maintained that the six year deal isnt as bad as it seems because when US takes over we get to start negotaiating a new deal. Wasnt top leadership meeting with USAIR while the negotiating committees remained available to meet with AA? As a member of the M&R Committee we only met with US once, and that was after the TA was struck. There was never a time when we were not available because we were meeting with US and to the best of my knowledge the other unions were there as well. All the MOUs and talks were done by Little and lawyers as far as I know.

 

[eolesen]

You think negotiating with the unions was the only thing that had to be done in bankruptcy?...

It wasn't.

 

[Bob Owens]

You think negotiating with the unions was the only thing that had to be done in bankruptcy?...

It wasn't.

Just 90% of it.

 

[1AA]

You think negotiating with the unions was the only thing that had to be done in bankruptcy?...

It wasn't.

What else was there that was more important? Remember the reason AMR filed?
LABOR COSTS!!!!

 

[wings396]

Contrary to what some will say, the sole intent of these airline BK's was to break the backs of labor. Sure there were other benefits, but it was the only legal loophole to tear apart the contracts that it took us years to build.

 

[ContUNITEus]

This news smells totally like US Airways merger to me... it might even have to do something with the US F/A's ratifying that contract by then.

 

[IORFA]

Doesn't sound like they care about the F/A's. Seems that the merger hinges on the USAPA ratifying next week and the NDA expiring with the bond holders on the 15th. I say anytime after the USAPA says yes, and they should, but before the 15th. Tommy boys days are numbered. Hopefully, the new livery and logo are as well! Time to stop the abomination before if really gets out of hand!!!

 

[AAviator]

USAPA is irrelevant.

The MOU was structured with APA so that no matter how the USAPA votes, the deal can move forward.