On 12/17/2002 8:55:54 PM Biffeman wrote:
In 18 years no judge has ever thrown out a section 1113 or 1114 letter, AMR tried last year in regards to TWA, the court said no.
AA never asked for an arbrogation of contracts that I know of, but TWA was prepared to do so if neccesary to close the deal. The unions agreed to it before it even had a chance to be ruled on.
As with any law, someone almost always gets to be first. The question now is will it be UA or US who gets to test the waters first?
Bronner doesn't have to provide the next tranche of DIP financing, just like DL backed out on providing additional DIP to Pan Am in 1991. Once that financing is no longer in place, US starts to run out of cash quickly. If cash drops below what the judge feels is required to protect the creditors, he'll move to liquidate of his own accord.
Folks, its not a bluff anymore...