Reservation Agent:
Since the first strike at Continental the bankruptcy laws have been changed in regard to action the debtor-in-possession can take against labor and management has provided the Courts with Section 1113 language for those unions who have restructuring or tentative agreements.
But, the risks are high for US Airways' employees, especially since Siegel told employees last week and John Luth was quoted in the Washington Post they expect other offers for the company.
People like Marvin Davis and Carl Icahn are lurking, the company has received liquidation offers or at least offers for pieces of the company, and the creditors are upset at being stiffed, when with reason to believe if all stakeholders had reached restructuring accords bankruptcy may have been avoided.
We'll know more shortly, with the September 10 hearing to obtain emergency relief from labor contracts, the September 23 clause in the TPG MOU, and the Courts September 26 hearing to decide whether or not to grant the remaining $425 million in DIP financing and to entertain other outside financing bids, which if they occur will hopefully be labor friendly.
Chip