Material breach, This is a legitimate reason for a revote

Hopeful

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Dec 21, 2002
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The problem is that even in BK court, the Judge will allow these provisions to stay in place for the top execs. It was proven in the USAir BK proceedings. The Judge will go along with the philosophy to retain the key managers in these "turbulent" times.
 

KCFlyer

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Aug 20, 2002
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Then what? While they aren''t busy renegotiating for concessions and they most likely will be wandering into court to go ahead and file bankruptcy. Then what happens?

What they did was wrong. Just like what the execs at Enron and Worldcom did was wrong. Do you guys want to end up like the Enron and Worldcom employees? You guys gotta do what you gotta do. But no matter what that is, AA''s going to be in bankruptcy. U came out of bankruptcy with pennies on the dollar for obligations and a boatload of new debt. Will AA''s creditors be willing to strike a similar deal, or will they just be happy to get the pennies on the dollar and cut their losses there with a liquidation, or will they be willing to put new money at risk with a company that has a workforce who trusts managment no further than they can throw them?
 

FA Mikey

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Aug 19, 2002
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Material breach? OOPS we didn''t actually forgot we hid the SERP fund from you in the full disclosure and open books. We may have glossed over the SR EXEC bonus plan that gives them a 100% bonus in 2005, and beyond. While you get a measly 1.5%. Did we also leave out the fact that the company terminated its deferred compensation plan for executives because its an additional perk that they could possibly lose in BK? Sorry, our mistake, but thanks for signing. We promise you wont be able to find ANY more smoking guns in the books and in those awful mandated SEC filings.
 

FA Mikey

Veteran
Aug 19, 2002
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Knowing what they did and that a vote on these concessions would absolutely fail. They would first have to negotiate a fair deal with each union. One that isn''t rammed down our throats. One that makes us a part of the solution and success. Not just an expendable commodity.