"Button Brigade" Panic Time

ralphcramden

Member
Nov 16, 2006
37
0
brooklyn
From the IAG website: Not what the "Button Brigade" wanted to hear... :shock:





Wednesday, November 22, 2006
Delta - the market speaks


Delta's management is frantically working the phones to build support for their team. But the market is building momentum against them.
Today's WSJ has a story that says Delta wants its people to rally to the flag. "The creation of ad hoc creditor groups in large bankruptcy cases isn't unusual, but some executives and employee groups have criticized such investors for their short-term interests, rather than looking out for the longer-range good of employees and companies trying to restructure." Can you imagine Delta's managers saying this? Critizing investors for protecting their interests? What should these investors do? Give Delta's management more time to destroy more value? Does this not provide the market with more ammunition to support US Airways' bid? :up:

We expect to see this splinter group grow. "The bondholders being pitched to combine forces represent about 30% of the total $16 billion to $18 billion claim that will eventually serve as the basis for doling out equity in postbankruptcy Delta." Watch Delta's management rush to get out of Chapter 11 ASAP because time is no longer on their side. In this process they will have to keep employees sweet - specifically pilots and flight attendants. Also watch for a campaign to ruffle feathers of US Airways employees in Charlotte. Charlotte will be dumped if the deal goes through because Atlanta is too big to give up.

Delta's management are in a pickle and they know it. So we expect to start seeing some dirty poker going forward because the stakes are very high for Delta's managers who are going to lose cushy jobs. :lol: