LCC plan and the bankruptcy judge

[Ukridge]

Sorry about the broadside ual747mech. Your post was helpful. I can just imagine the stress that those who are employed at UAL feel with the info and lack thereof at times.
I still however, will criticize wts' punctuation. He needs to rely on capitalization and a space after the periods.:bigsmile:]

 

[wts54]

like I said no negotiations last week or the week before,but will
resume.


March 3, 2003

TO: MEMBERSHIP OF DISTRICT 141-M EMPLOYED BY UNITED AIRLINES

Dear Sisters and Brothers:

Recovery Plan discussions resume this week between United Airlines and District 141-M. If there is no consensual agreement between the parties,
UAL has indicated that they will go before the Judge March 15th and ask to abrogate the Agreement. The Judge will not decide that day and further
negotiations may take place prior to his decision on the Company’s motion.

Recent events in the US Airways’ bankruptcy case where the Judge ruled in US Airways favor to dissolve the pilots’ pension fund should illustrate the
harsh reality of bankruptcy, and the role of a judge to try to ensure that a company survives and creditors are paid. Fairness and past transgressions
account for nothing in this process.

We will keep you posted on this week’s events.

Sincerely,

THE DISTRICT 141-M NEGOTIATING COMMITTEE

Enough proof.

 

[RowUnderDCA]

[blockquote]
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On 3/1/2003 6:12:12 PM Ukridge wrote:

Question for those of you in the know. What latitude does the bankruptcy judge have with the LCC plan? What I mean is that the judge's mandate seems to be to ensure the viabilty of the airline and to position it for an exit from Chp 11. Does the judge have the discretion to look at the seperate LCC and dissaprove of the idea? Can he make changes to the plan after inputs from the unions, creditors, and other parties? If he sees offers from other parties that are inimicable to a succesful exit can he rebuff them?
What is the latest as to where things stand? It seems to have been quiet the last few days and that seems to mean something is a-brew.
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[/blockquote]

Uk-

I seem to recall hearing repeatedly, two important things about bk-

1) that the judge is presiding over a process to try to get something for the creditors. With US this entailed a report from management that their 'plan' would result in more to the creditors than liquidation.

2) that bk laws give 'management' an exclusive period to present a plan. This exclusive period seems pretty generous and can be extended.

Now, how are these processes interupted? I don't know. But I imagine that any party can petition the court to say 'not extend the exclusive period for submitting a plan to the creditors for approval.' Perhaps a party with a better idea, a lot of money and neurosis can petition the court with a better plan, but I think management has some protection in law.

So, I don't think that the judge can substitute his business judgement for management be caveat (perhaps with an exception for the totally whacky)

Just speculation.

 

[ual747mech]

Wts,

That doesn't prove one way or the other whether there was or there wasn't any negotiation last week or the week before. How do you know there wasn't any negotiation last week or the week before? Are you the lead negotiator?

And what about this statement from District 141M, dated 2/14/03.

"We continue to await more specifics on the Company’s proposals and have no further meetings scheduled with them until the week of February 24th."

 

[UnitedChicago]

ual747...thanks for saying that. I was going to, but I thought wts would get mad at me again.

no where does is state that SF walked out and that there weren't negotiations last week.

 

[wts54]

What reason would I have to lie to you a fellow mechanic? Dont believe it.
I was only trying to tell you and others some info. that I heard from a
very reliable person.Choose to believe or ignore what you want.

 

[ual747mech]

[blockquote]
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On 3/4/2003 6:02:21 PM wts54 wrote:

What reason would I have to lie to you a fellow mechanic? Dont believe it.
I was only trying to tell you and others some info. that I heard from a
very reliable person.Choose to believe or ignore what you want.
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[/blockquote]

K, thx for the info bud. It'd be better if you could give us the source, otherwise people tend to think you're just spreading rumors.