Delta Pays Lawyers Instead

[skyflyr69]

Delta can pay Giuliani firm but not pilots' pensions
By Katherine Griffiths in New York
Published: 17 September 2005
The bankrupt US carrier Delta Air Lines has told 3,500 retired pilots it does not have the money to pay their pensions next month, according to its initial plans to restructure its finances.

But, in a move likely to anger its pensioners, the company has asked for permission from a court to pay $400,000 a month to a financial advisory firm set up by New York's former mayor, Rudolph Giuliani. Delta began using Mr Giuliani's firm in July 2004 to help it create a restructuring plan and has paid it $2.4m in the past 12 months.

Delta MGT. should be ashamed. they are like the rest......

:angry:
:down:

 

[WorldTraveler]

Delta has warned for years that it wanted to stay out of bankruptcy because it is so costly. You don't realistically expect DL to file for bankruptcy and then hire the high school debate team to represent them, do you?

I don't think DL is enjoying watching its money go out the door in this process any more than you are. Do you realize that the lenders that gave DL DIP financing charged a $45 million fee which was taken right off the top? I don't think any company wants to pay those kinds of fees and Judge Beatty made a comment indicating her disgust at it but it's what lenders are charging and right now there aren't many willing to lend to airlines.

All DL employees have to pay for the cost of bankruptcy in a sense but I'm guessing that the pilots will get whacked particularly hard. DL mgmt hasn't forgotten who dragged out an out of court restructuring so long that the company was brought to its knees a year ago.

 

[TheDog2004]

the only real winners in a bankruptcy case are the lawyers.

 

[Ch. 12]

Delta can pay Giuliani firm but not pilots' pensions
By Katherine Griffiths in New York
Published: 17 September 2005
The bankrupt US carrier Delta Air Lines has told 3,500 retired pilots it does not have the money to pay their pensions next month, according to its initial plans to restructure its finances.

But, in a move likely to anger its pensioners, the company has asked for permission from a court to pay $400,000 a month to a financial advisory firm set up by New York's former mayor, Rudolph Giuliani. Delta began using Mr Giuliani's firm in July 2004 to help it create a restructuring plan and has paid it $2.4m in the past 12 months.

Delta MGT. should be ashamed. they are like the rest......

:angry:
:down:

[post="303689"][/post]​

Get real, skyflyr...do you not know how court systems work? Of course you have to pay lawyers. Yet another just trying to incite a riot.

Dog...you said it best. Lawyers definitely make out well in BK.

 

[wings396]

Don't Kid yourself about DL not wanting to file due to the related costs. Take it from a former US Employee, they will Screw the Workforce out of Millions more than they will spend on legal costs. I'm surprised that they didn't file sooner to get the ball rolling. I know that DL is not heavily Unionized, but for those that are, your Contracts will be trash. Pensions will vanish, and Airports along with vendors will get shafted for Millions. A/C will be removed from service, with multitudes of furloughs to follow. Believe me, I have seen it all first hand with 2 rounds of BK. The end result was the loss of my job in favor of "Outsourcing".

 

[coolflyingfool]

Bankruptcy lawyers are really the lowest. They charge outrageous fees and make money off the people who have the least. $200,000 a month for the past 12 months, to get a plan together. They should have been done by now. You are talking about $10,000 a day, every day, for a year, excluding Sat and Sun. I wouldn't think they need more money or time, it should be done. I will get off my soapbox now..................

 

[markkus757]

If any pilots can also do financial planning, then why shouldn't they do it instead? Oh, you mean they can't do that also? I would complain if Giuliani was flying the plane, but if they cannot pay it AT THIS TIME, they can defer it, per the law. If you don't like that system, either have the law changed or come into the present and get a defined compensation plan where the money is yours and they cannot hold on to it.

 

[aislehopper]

I believe that most bankruptcy lawyers require payment up front - be it corporate or personal.

Why? Look at the clients for whom they work.

 

[FWAAA]

I believe that most bankruptcy lawyers require payment up front - be it corporate or personal.

Why? Look at the clients for whom they work.

[post="304038"][/post]​

No kidding - their clients are broke deadbeats. Not paying their legal obligations.

Seriously, though, most lawyers representing individual bankrupt clients require an upfront deposit of their fee but they can't touch it until the bankruptcy court approves it. In large corporate bankruptcies, the legal fees get paid first, and the court will have to approve all fee invoices. Since fees get paid off the top, the lawyers aren't worried about their clients stiffing them. B)