According to Boston Captain Rep Garland Jones, "with a possible Chapter 11 filing in the very near future, no agreement with the company, and thus no protection whatsoever for this pilot group going into bankruptcy. And what's at stake? According to our legal and financial advisors, our entire contract in now in grave jeopardy, including Scope (alter-ego airlines flying our A-320's), Fragmentation Protections (at 15% trigger, the best in the industry), and Seniority Rights (thus allowing a furlough out of seniority, according to equipment type).
In short, we have been briefed by our advisors that upon entering bankruptcy, the company will go before the judge with a 1113 proceeding that increases their ask by 125-150%, vacates our entire exiting contract, and without any profit sharing or equity participation possibilities. Moreover, they continued, the maximum amount of leverage to strike a deal is now, while outside bankruptcy, because upon entering a Chapter 11 the world changes for the company once again, with forces outside their control (the ATSB, creditors, and DIP and exit fund providers) then able to exert considerable influence in shaping the outcome.
Moreover, both our advisors and Bruce Lakefield are in agreement that without an agreement with the pilots prior to going into a Chapter 11, the risk of liquidation becomes significantly higher. How much higher? Bruce Lakefield gave us a 5% chance of survival under those circumstances, with Michael Glanzer giving us even less.
These arguments apparently fell on deaf ears with the PIT and PHL Reps, and with 3 members of the NC, for, even as late as today, there still appears to be no sense of urgency by these parties to reach a TA with the company."
Respectfully,
USA320Pilot
In short, we have been briefed by our advisors that upon entering bankruptcy, the company will go before the judge with a 1113 proceeding that increases their ask by 125-150%, vacates our entire exiting contract, and without any profit sharing or equity participation possibilities. Moreover, they continued, the maximum amount of leverage to strike a deal is now, while outside bankruptcy, because upon entering a Chapter 11 the world changes for the company once again, with forces outside their control (the ATSB, creditors, and DIP and exit fund providers) then able to exert considerable influence in shaping the outcome.
Moreover, both our advisors and Bruce Lakefield are in agreement that without an agreement with the pilots prior to going into a Chapter 11, the risk of liquidation becomes significantly higher. How much higher? Bruce Lakefield gave us a 5% chance of survival under those circumstances, with Michael Glanzer giving us even less.
These arguments apparently fell on deaf ears with the PIT and PHL Reps, and with 3 members of the NC, for, even as late as today, there still appears to be no sense of urgency by these parties to reach a TA with the company."
Respectfully,
USA320Pilot
