Haven't Heard About the Extra 4% in Equity to be Held Aside?

[NYer]

Text taken from official court documents pertaining to the Early Out Lawsuits (Case3:13-cv-05566-WHO)
 
"As part of its Equity Distribution Plan, TWU planned to set aside 5% of the shares it would receive from American as a “reserve” for covering errors, challenges to the Plan and administrative expenses for the Plan. American intends to complete issuance of equity to its unsecured creditors 120 days from the first issuance of equity, about April 9, 2014. In their complaint, Plaintiffs indicated that they intended to seek a preliminary injunction barring TWU from issuing all of the equity it receives to ensure that shares would be available for issuance to Plaintiffs and the members of the putative class if a class action is authorized by the Court."

"In view of the foregoing, TWU and Plaintiffs have agreed and hereby stipulate as follows:"

"1. Upon receipt of the day 120 distribution of equity from American, TWU will hold in its American Airlines equity distribution trust account shares equaling 14% of the total number of shares it received from American. These shares will be held to satisfy the potential claims to shares of members of the proposed class in the event that plaintiffs prevail on the merits of their claims and on their motion for class certification, as well as for possible appeals that may yet be filed and cannot be satisfied out of the day 120 distribution, and for administrative and legal expenses related to the trust account and the litigation."

 

[enough already]

They can do that Brother...

 

[AANOTOK]

So what are you saying Nyer? Instead of the 5% they originally were going to keep, and then the extra 5% they were going to take totaling 10%, now they are gonna take another 4% from the members??

 

[NYer]

So what are you saying Nyer? Instead of the 5% they originally were going to keep, and then the extra 5% they were going to take totaling 10%, now they are gonna take another 4% from the members??

 
According to the Court documents, it will be a total of 14% held aside.

 

[AANOTOK]

 
According to the Court documents, it will be a total of 14% held aside.

Don't you mean taken, never to be returned!!  B)

 

[NYer]

Don't you mean taken, never to be returned!!  B)

 
"held aside," pending the resolution of the lawsuit and payment of expenses. The net would be distributed back to the Members. At least that's what they've said.

 

[screwed again]

Wow! I mean friggin' Wow! How many times does this greedy "union" have to put it sticky fingers on my shares? From 5% to 14% just like that. Poof! Gone.
Oh Yeah, "held aside" pending resolution minus expenses. You will still fund the lawsuit agaist the greedy stooges that left the company. There is little doubt in my mind, that at the 120 day mark, with stock up, the mystery equation will show that the union paid us too much. Regardless of the lawsuit outcome the shares are gone!       There is my rant. It's barely worth wasting energy getting mad about any more. It's what can be excpected out of this union, any union for that matter. This is wrong from top to bottom.

 

[Chuck Schalk]

TWU will hold in its American Airlines equity distribution trust account shares equaling 14% of the total number of shares it received from American. These shares will be held to satisfy the potential claims to shares of members of the proposed class in the event that plaintiffs prevail on the merits of their claims and on their motion for class certification, as well as for possible appeals that may yet be filed and cannot be satisfied out of the day 120 distribution, and for administrative and legal expenses related to the trust account and the litigation.
 
we pay the expenses?   Administrative?

 

[swamt]

Chuck,   I am no lawyer, but I don't think they can legally do that for expenses and administrative.  This is why they collect dues from members, and it should come out of the dues not the shares for the members.  This could very well be a failure to represent case.
To me the increase in shares announced says a lot.  It appears that the TWU is expecting to lose the battle of lawsuits and are better preparing to appeal, therefore they need more shares of equity to do so.  I still am not convinced they can do this you guys really need to look at filing some kind of motion or something to stop this before too late, I say they are suppose to use the memberships dues monies.  This is using the shares to pay for something the unions dues cover, simple as that.  Where does the money come if someone sues the union for non representation?  Where does the money come from if someone sues the union for (like the company) not adhearing to the contract?  It all comes from the dues bank, which has been moved into an account for this type of use, Then the union will ask and usually receive reimbursement from the company all legal fees from the suit, so why are they using the shares. Doesn't look good to me at all guys.   I know the perfect attorney to hire,  L.S. would probably be more than happy to take it on and maybe even at cost.   It all looks fishy to me, hope you guys can look into it further...

 

[DallasConehead]

On top of all of this... Do any of the members or representatives even know how much $$ the 14% is??? I mean I can see the retirees getting their day in court, but how about a little transparency here, just how much is being held back? I have a feeling its going straight into some peoples pockets, I wonder if the DOL would find any interest in all of this.

In the meantime, where are all of our representatives? Peterson and Owens, what are they doing to mitigate the damage to their membership?

The tax man takes out 32%, the union takes out 14%, that leaves us with 54% of what we should have gotten as a result of our pensions and retiree medical being gutted among other things.. And, on top of all of this the 120 day payout will be based on the highest price the stock got to in the proceeding 120 days, 39 and change. I can see it now, another 10 shares deposited, what a sham.

 

[NYer]

Chuck,   I am no lawyer, but I don't think they can legally do that for expenses and administrative.  This is why they collect dues from members, and it should come out of the dues not the shares for the members.  This could very well be a failure to represent case.
To me the increase in shares announced says a lot.  It appears that the TWU is expecting to lose the battle of lawsuits and are better preparing to appeal, therefore they need more shares of equity to do so.  I still am not convinced they can do this you guys really need to look at filing some kind of motion or something to stop this before too late, I say they are suppose to use the memberships dues monies.  This is using the shares to pay for something the unions dues cover, simple as that.  Where does the money come if someone sues the union for non representation?  Where does the money come from if someone sues the union for (like the company) not adhearing to the contract?  It all comes from the dues bank, which has been moved into an account for this type of use, Then the union will ask and usually receive reimbursement from the company all legal fees from the suit, so why are they using the shares. Doesn't look good to me at all guys.   I know the perfect attorney to hire,  L.S. would probably be more than happy to take it on and maybe even at cost.   It all looks fishy to me, hope you guys can look into it further...

 
It you read the original post, you'd notice the 14% was agreed to because the plaintiffs were seeking an injunction that would prevent any further distribution until the case was settled. It was either no more distributions or hold back an agreed to percentage.
 
Aside from that, the Equity comes because the TWU is a creditor in a bankruptcy and not through the collective bargaining process. There is a distinct separation that is clearly apparent if you look at past cases in which this same process was used to distribute equity in order bankruptcies.
 
Remember that we are the LAST legacy carrier to go through a BK and this entire process has already been argued and used in past cases. Nothing new going on.

 

[NYer]

On top of all of this... Do any of the members or representatives even know how much $$ the 14% is??? I mean I can see the retirees getting their day in court, but how about a little transparency here, just how much is being held back? I have a feeling its going straight into some peoples pockets, I wonder if the DOL would find any interest in all of this.

In the meantime, where are all of our representatives? Peterson and Owens, what are they doing to mitigate the damage to their membership?

The tax man takes out 32%, the union takes out 14%, that leaves us with 54% of what we should have gotten as a result of our pensions and retiree medical being gutted among other things.. And, on top of all of this the 120 day payout will be based on the highest price the stock got to in the proceeding 120 days, 39 and change. I can see it now, another 10 shares deposited, what a sham.

 
Approximately $50M.

 

[DallasConehead]

Approximately $50M.

Well, that's certainly a nice little bump for the leaders of this sham union.

 

[AA-MRO.COM]

You need to know the top secret formula in order to figure out what 14 % equates to. They have stolen money from you yet again...
Lets not forget the rest of the twu thievery
 
Reduced vacation
reduced sick time
reduced IOD time
Reduced holiday pay
reduced holidays
Increased heath care premiums
increased union dues
 
Nine year contracts and nothing but concessions
sign a card get rid of these crooks

 

[xUT]

When do you Guy's N' Gal's ever learn?
Just wait for the twu/iam alliance then learn how 'both' onions will screw you.
Sheesh.....................
But what can you say when more than 50% voted for it?
 
B) xUT