BoeingBoy
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Delta, US Airways Compete For Delta's Creditors
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Good article.
I was thinking that this whole thing is going to come down to one creditor's decision alone, and that is Boeing.
Found a link to a decent write up regarding this issue: (sry if posted before)
Boeing's situation
Gilding the Lily
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Jim,
Thanks for the link. Interestingly, I found evidence in this article to support the notion that US is not yet a "party-in-interest," despite the similar, but ambiguous, language used by Bethune in his affidavit:
Delta has exclusive rights until Feb. 15 to submit a reorganization plan to the court, and until Apr. 16 to seek acceptance of it. US Airways will be able to work with creditors during this period, but not with the court. If Delta seeks an extension of its exclusivity, as it has done three times so far, US Airways won't be able to oppose the request itself; it will have to find creditors willing to take its position.
In order to file a motion to oppose a time extension, you must be a "party-in-interest" as well. Although, that term is not really defined, I am convinced that the "party-in-interest" in regards to a time extension is the same as, or similar, to the "party-in-interest" in regards to filing a plan after the exclusivity period.
Now, as I stated in other threads, US is certainly aware of this. US simply has not needed to be a "party-of-interest" up to this point. Even if DL does seek a time extension, US can request a creditor to do the dirty work on its behalf and file a motion. But when it comes time to file its own plan, US will need to take certain actions to become a party-in-interest... the most likely scenario is US purchasing a small claim to become an actual unsecured creditor. Of course, US will probably have to pay a multiple above the actual value of the claim, as US is in a lower bargaining position. If US takes this route, it will likely happen days before February 1st.
I was just thinking, US probably has had some tickets issued on DL stock that they might be owed money on,or services US gives DL, like MTC at certain outstations.
I know US uses DL in at least one European City for US' ETOPS.
US might be a creditor, but a small one at that.
I know US uses DL in at least one European City for US' ETOPS.
US might be a creditor, but a small one at that.
Both of those articles are essentially a compendium of historical facts and events - most of which have previously been discussed here and elsewhere - nothing really new. It would be great if a completely neutral source came up with a non-emotional, logical analysis of the situation with a concise list of pluses and minuses for each eventuality (merge/no-merge). It surely has been done, but it's more than likely proprietary. If you look at Delta's arguments, they seem to me anyway to have very little substantive backup to prove their point of staying neutral. Parker's merging rationale really isn't much better - other than the $4B Cash offer.
