CLT Observer: Airline and Ala. fund make deal...New info on deal

[chipmunn]

In my opinion, when they come out of bankruptcy, you're going to have the best airline in the country from a financial point of view, Bronner said in an interview.

Attorneys and spokesmen for the Air Line Pilots Association and the International Association of Machinists said they were pleased with the deal, particularly after Bronner spoke to the creditors committee, which includes both unions.

But by early Thursday morning, the creditors had negotiated the final terms of a deal that was significantly better than the Texas Pacific deal, he said.

 

[chipmunn]

[A href=http://www.charlotte.com/mld/charlotte/business/companies/4160556.htm]http://www.charlotte.com/mld/charlotte/business/companies/4160556.htm[/A]

 

[AOG-N-IT]

Chip, Do you see us losing anything of value in regards to TPG's background and track record...or is this purely a monitary issue? I understand the RSA is very involved in the media' oriented markets....so that kind of cost effective exposure could benefit us too. What are your thoughts regarding the benefits of one versus the other?.....that is beyond the simple math issues of course.

 

[usfliboi]

i think to assume rsa is the final winner in this is like assuming tpg was the final bidder....

 

[chipmunn]

AOG-N-IT:

AOG-N-IT asked: Chip, Do you see us losing anything of value in regards to TPG's background and track record...or is this purely a monitary issue?

Chip answers: TPG's experience as an airline turnaround specialist would have been an asset, but there are two intangible benefits to the RSA deal. First, RSA will likely be hands off investors who will empower Siegel to run the company. Second, the agreement was brokered and endorsed by the unsecured creditors committee. The RSA deal gives the unsecured creditors 8.5 percent of the company post emergence, which significantly reduces the creditors seeking a liquidation. For a listing of the unsecured creditors committee you can click on the Magazine icon, airline commentary, and the article titled US Airways May Become a Hot Commodity.

Chip

 

[JonC]

[blockquote]
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On 9/27/2002 10:44:59 PM chipmunn wrote:

AOG-N-IT:

AOG-N-IT asked: "Chip, Do you see us losing anything of value in regards to TPG's background and track record...or is this purely a monitary issue?"

Chip answers: TPG's experience as an airline turnaround specialist would have been an asset, but there are two intangible benefits to the RSA deal. First, RSA will likely be hands off investors who will empower Siegel to run the company. Second, the agreement was brokered and endorsed by the unsecured creditors committee. The RSA deal gives the unsecured creditors 8.5 percent of the company post emergence, which significantly reduces the creditors seeking a "liquidation". For a listing of the unsecured creditors committee you can click on the Magazine icon, airline commentary, and the article titled "US Airways May Become a Hot Commodity."

Chip

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[/blockquote]

But how do we know that RSA isn't just in this to sell us off in a few years? I smell something funky going on here, probably involving a MidAtlantic spinoff down the line and selling mainline to someone else - at the expense of our careers of course.

 

[a320av8r]

How do we know the world isn't going to end today?!!!

Worry about tomorrow tomorrow.

 

[Lakeguy67]

The slots at LGA and DCA. Also all employee groups will be getting stock. Mechanic and Related are getting 4.4%, do not know about the other groups.

 

[airknocker]

Help me with my math. Unsecured creditors=8.5% equity, RSA=37.5%, ALPA=20%, Executives get 3+ million shares. When America West got the 400 million loan guarantee they gave up 33% equity. Where is the U collateral for the 900 million ATSB loan quarantee?

 

[AOG-N-IT]

Chip, I see we have somewhat of an alike take on things. I have said on other threads that I was under the impression that the TPG was interested in a greater degree of Operational Control for thier investment. I was never pleased with the amount of Our Company that they were bargaining for to begin with. If the RSA is going to be more of a Silent Partner/Investor?...I think this will be a plus. This company has traditionally had too many Chiefs..and not enough Indians We don't need that cultural flaw to continue in terms of re-organization. JonC..Dear friend, I understand your frustrations with TPA (Heavy Check)...and the sub-standard staffing issues you are observing there. Trust me old friend...and take it from someone who hears it from every end of the spectrum. You are not alone I hear nothing but good things heading the TPA-way...and I'll be honest...if it's true? TPA will gain work...but the remainder of the operation will suffer in it's wieght in stones. Allow me to qualify this observation , before you take it as a slap in the face against TPA.