Judge Approves Competing Bids

[funguy2]

IMO, if there is a bid for all or part of U, it will come at the last minute.

If SWA jumps in, they will wait in the wings to see who falls out of the tree first, then they will top the offer at the last minute ala ATA.

It isn't over yet.

Boomer

[post="274675"][/post]​

Maybe, maybe not. For the TZ process, there were bids accepted confidentially, then all bids revealed at the end, and the best deal chosen. I don't recall how US BK #1 worked.

Obviously, its in the bidders best interests to wait until the end of the process. The same concept applies on e-bay.

 

[osunut]

OK, my 2 cents here. Quick and simple. This deal will have over $1 billion, with a "B", in liquidity after it is done. With all the major investors in the avaition industry, who really is left to try and finance another deal since most of them are already behind the HP/U deal??

Reality check. This is a normal process that must happen under USC and no other carrier or group of carriers is willing to risk much right now. I mean NW just took off peanuts and magazines, UA may strike, Blue took a hit, WN said it can't get the hedges it has in the past. We are in trouble as an industry and if this doesn't happen, we are all going to be looking at another line beside at the ticket counter.

Reality check....dead issue...move on.....

 

[RowUnderDCA]

And that gets your panties in a bunch,
doesn't it?

While I don't necessarily agree with the
American business system, it is what
it is, and like I have said many times on
this forum:

YOU go out and get the same level
of education and business experience
as most corporate executives, and
then you can also share in the
wealth. Until then, find your niche
and do it the best you can.

[post="274673"][/post]​

or at least VOTE to change the American business system. Do airline employees actually DO that... or do they just complain about the system?

 

[TechBoy]

OK, my 2 cents here. Quick and simple. This deal will have over $1 billion, with a "B", in liquidity after it is done. With all the major investors in the avaition industry, who really is left to try and finance another deal since most of them are already behind the HP/U deal??

[post="274737"][/post]​

A little reality back at you. No one is talking about another "deal." We are talking about bids that lead to liquidation. That is obviously very bad for the employees, but it has certain advantages to the creditors, not the least of which is that it ends the losses for good. You can talk about $1B all you want, but it won't be good for the creditors if the new entity keeps burning cash. Not to mention that a large portion of that $1B comes from (1) existing US and HP cash; (2) Airbus loan tied to plane purchases; and (3) express carrier money to maintain cash draining express service. Hardly a stunning collection.

The real reason why a competing plan will not happen is the logistical difficulty of putting one together. No one entity is interested in all of the valuable assets, so it would be necessary for competing carriers to band together to jointly bid on various assets. That is difficult.

 

[nycbusdriver]

IMHO, it's doubtful that the judge will seriously entertain any competing bids that will part out USAirways' assets, especially when USAirways' major lenders are already on board with the AWA/USA plan. If the major lenders see a future cash-cow, they're better off keeping it alive. No doubt they will make this perfectly clear to the judge who will act accordingly.

 

[FWAAA]

IMHO, it's doubtful that the judge will seriously entertain any competing bids that will part out USAirways' assets, especially when USAirways' major lenders are already on board with the AWA/USA plan. If the major lenders see a future cash-cow, they're better off keeping it alive. No doubt they will make this perfectly clear to the judge who will act accordingly.

[post="274841"][/post]​

While I agree that it is unlikely that serious competing bids upset this apple cart, you overstate the importance of the secured creditors' opinion of the plan; the real parties that matter are the UNSECURED creditors (the secured can have their planes back, after all). That the HP acquisition of US might make for better cash flow for the secured creditors does not matter at all in bankruptcy.

The only thing that matters is how well the unsecured creditors fare - and if competing bids that lead to liquidation give the unsecured a bigger dividend, then that's the route the law requires.

 

[delldude]

A little reality back at you. No one is talking about another "deal." We are talking about bids that lead to liquidation. That is obviously very bad for the employees, but it has certain advantages to the creditors, not the least of which is that it ends the losses for good. You can talk about $1B all you want, but it won't be good for the creditors if the new entity keeps burning cash. Not to mention that a large portion of that $1B comes from (1) existing US and HP cash; (2) Airbus loan tied to plane purchases; and (3) express carrier money to maintain cash draining express service. Hardly a stunning collection.

The real reason why a competing plan will not happen is the logistical difficulty of putting one together. No one entity is interested in all of the valuable assets, so it would be necessary for competing carriers to band together to jointly bid on various assets. That is difficult.

[post="274835"][/post]​

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etops1
post Mar 28 2005, 12:09 AM
Post #1


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on thursday i was in clt waiting to work a trip when i saw lakefeild waiting to board a flt to rsw. aslo told me that there are many airlines out there that want to purchase airways but only assets not the employees including aw. the only airline that is willing to purchase assets and employees is ual. said that he will not make a deal with an airline that does not have our mainline employees interest at hand.
. he told me there was no reason to b/s me. its reality.

this guy saw it first.... 😉

 

[diogenes]

No RUD, we are too busy voting social interests.

Social interests have their place, but they need to be balanced with economic ones.

The right to own a gun is important, but what good is the right if you can't afford one?

The right to express your religious beliefs is important. Tithing is an important element of religion, so a decent paycheck is helpful, yes?

Meanwhile, the monied interests are running the table in DC.

I find it less useful to blame the pols, or the greedheads, and more helpful to accept my duties as a citizen. And no, those duties do not end with voting - there are 1001 ways to participate.

Folks, politics is no more or less dirty than any other institution. George Washington was a pol. Ditto Lincoln. Reagan? Yep. Boy King George? Him, too.

Moreover, politics is how we decide who gets what. Abdicate your seat at the table, and you'll go hungry.

I know we have been taught politics is dirty, and complicated, and that our input is useless. That is a status quo PR campaign. The folks at the top of the current heap obviously don't want the applecart upset.

My tag line tells you where I stand.

RUD, you just love setting me off, don't you?

 

[skyguy25]

WN might have a trick up its sleeve......first hand rumor has it they are looking to set up shop ASAP in CLT. Let the bidding war begin. FL thought they had TZ in the bag.. Don't underestimate "W"-al-"N"art.

 

[nycbusdriver]

While I agree that it is unlikely that serious competing bids upset this apple cart, you overstate the importance of the secured creditors' opinion of the plan; the real parties that matter are the UNSECURED creditors (the secured can have their planes back, after all). That the HP acquisition of US might make for better cash flow for the secured creditors does not matter at all in bankruptcy.

The only thing that matters is how well the unsecured creditors fare - and if competing bids that lead to liquidation give the unsecured a bigger dividend, then that's the route the law requires.

[post="274842"][/post]​

Okay.

If everything (and I mean everything) at USAirways is mortgaged to the hilt, that means that everything is ultimately in the hands of the secured creditors. Liquidating would leave nothing for unsecured creditors, so how can Chapter 7 help them? Wouldn't it be better to to gamble with a going concern since they have nothing to lose, and everything to gain?

 

[Cosmo]

There's another aspect to this drama that I believe many folks are overlooking. Let's not forget that, even as we speak (write?), Boeing is almost certainly trying to figure out a way to undo Airbus' participation in this deal, at least in regard to the proposed order for 20 A350s given the subsidization charges (and the associated WTO complaint) being thrown across the Atlantic Ocean. Is it that implausible to think that Boeing might team with Southwest, American, JetBlue, AirTran and others to finance asset purchases for such a "consortium" -- DCA/LGA/ORD slots, DCA/LGA/BOS/ORD/CLT/FLL gates, perhaps even guaranteeing short-term B737/A320 aircraft leases to facilitate the start of new service by some of the above carriers while they await new aircraft deliveries, thus getting some of the secured creditors on board?

I will agree that the above scenario (or something similar) does not seem very likely to occur, but IMHO it's not impossible either. Boeing has the financial wherewithal to do it, and they would love to rob Airbus of an A350 launch order. While US Airways would likely be viewed as collateral damage in such a scenario, there's no love lost between Boeing and US Airways either.

And to add another, only-somewhat-related thought, does anyone else think that Southwest might put a premium on any bid it makes for US Airways assets given the reality that asset sales would most likely lead to the liquidation of that carrier and keep America West, its major competitor in PHX and LAS, from getting stronger?

 

[eolesen]

Bigger question is -if- there's another bid, will Parker & Friends be in a position to up the ante, or would they just walk away like TPG did when RSA showed up?

 

[BoeingBoy]

Apparently, Wellington's investment is shaking up the relative ownership of the "new" US/HP. 49% will now go to the investors (up from 41%), while HP shareholders will get only 39% (instead of 45%) and creditors will get 12% (instead of 14%).

Group's stake in merged carrier grows to 49 percent

Jim

 

[Globetrotter11]

And this is from another aviation forum - getting more interesting, it seems.

However, with the June 13 date - is this a premonition or a spoof??


JUNE 13, 2005 • Editions: N. America | Europe | Asia | Edition Preference





Gene Marcial



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INSIDE WALL STREET

Alaska Air: Circling Over The America West Deal

A third airline may yet join the America West Holdings-US Airways (UAIRQ ) party. On May 19, the two airlines announced final plans to merge and form a new company of which America West (AWA ) shareholders would own 45%. Analysts put the value of the deal at $6 per America West share. Now some pros close to the industry say Alaska Air Holdings (ALK ), which owns Alaska Airlines, may make a bid to buy AWA, without disturbing the proposed merger, leaving Alaska the bigger shareholder in the new merged company. Vincent Carino, president of Brookhaven Capital Management, which owns AWA and Alaska shares, says: "Alaska's top management is considering a move to buy America West to gain critical mass and to better compete in the fiercely competitive industry -- and avoid being a takeover target itself." One major West Coast airline analyst, who didn't want to be named, says it would be "a great deal." Alaska's management "is capable of doing it -- and it should," he says. Alaska's market cap is $780 million, vs. AWA's $107 million. Alaska's stock is up from 18 last Aug. 9 to 28 on June 1. Carino says Alaska could use its stock as currency to buy AWA, now 5.72 a share, possibly at 7 a share. Alaska declined comment; AWA didn't return calls.



Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.



By Gene G. Marcial

And to add another, only-somewhat-related thought, does anyone else think that Southwest might put a premium on any bid it makes for US Airways assets given the reality that asset sales would most likely lead to the liquidation of that carrier and keep America West, its major competitor in PHX and LAS, from getting stronger?

[post="274903"][/post]​