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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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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.