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On 4/2/2003 11:48:29 AM oldiebutgoody wrote:
I''ll bet I''ve forgotten more about chapter 11 than you''ll EVER know, and I
just went through one.
The judge is not "god almighty", as you suggest; the law is. Judges ONLY rule on matters which are brought before them.
The matter of the airport trust certificates that UAL elected not to pay HAS NOT YET GONE BEFORE THE JUDGE.
Also, you think U had a problem with pensions, UAL has 2.5 times the number of employees that U has.
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Oldybutgoody, you should go into standup comedy; you are hilarious. You first made incorrect statements about capacity reduction in this thread and now you''re going to prove yourself wrong about UAL''s chapter 11 filing? You forgot more about chap 11 than I''ll know? You have no idea what my level of knowledge is. BTW, chapter 11 is different than chapter 7 or 13 personal bankruptcy. Although it''s possible for individuals to file under chapter 11, it would be highly unusual. But you do have an advantage over me; I''ve never had to file for personal bankruptcy.
As for the ''airport trust certificates,'' there is no such animal. I had to do a search to verify this, since UAL has a large number of different debt instruments. Here''s a list for those that want to deal with the Joe Friday facts, not the Cliff Claven facts:
"United has a complex debt structure, consisting of:
$3,100,000,000 of various aircraft-backed mortgages secured
by 87 aircraft;
4,000,000,000 of various aircraft-backed enhanced equipment
trust certificate financings secured by 100
aircraft;
1,800,000,000 of various capital lease obligations with
respect to 69 aircraft;
5,500,000,000 of various operating lease obligations with
respect to 243 aircraft;
646,000,000 owed under six series of senior notes due
between 2003 and 2021 issued under a 1991
Indenture between United Air Lines, Inc., and
the Bank of New York;
1,700,000,000 owed under 18 special facility revenue bond
facilities doe between 2011 and 2035;
97,000,000 of 13.25% Trust Originated Preferred
Securities, called TOPrS; and
200,000,000 of estimated trade debt."
Here''s the link:
http://www.bankrupt.com/united.txt
Approximately page 4.
UAL is in default on some of the equipment trust certificates, secured by aircraft. UAL has successfully renegotiated with some of bondholders and is in the process of negotiating with others. The equipment trust certificates are secured by aircraft. Aircraft are not exactly selling for a premium right now, so if the creditors want to repossess the aircraft, they''re more than welcome to. They can park them in the desert alongside the more than 1000 other aircraft taken out of service since 911.
As for Judge Wedoff, his rulings and statements thus far have been unquestionably clear: his primary purpose is to ensure that UAL survives as a viable corporation. He has interpreted the law in such a manner as to be most beneficial to the survival of United. I don''t expect him to rule differently with respect to any bondholders.
While UAL''s pensions are underfunded, they are less underfunded than U''s pensions were. And UAL''s pilots have negotiated a lower pension multiplier on the A fund in their TA (from 1.5% to 1.35% multiplier with a 30 year cap), so the underfunding problem has been reduced. Here''s the text:
"Utilizing the current pilot defined benefit plan: 1.35% times
final average pay (highest consecutive 36 months out of the
the120 months immediately preceding retirement), times
years of participation to a maximum of 30 years. Early
retirement reduced 3% per year from age 60."
Here''s the link: http://www.flyingcold.com/alpa/Tentative_A...ch27.pdf
See page 21.
Oldybutgoody, you have a tenuous grasp of the facts. In any further correspondance, could you please back up your ''facts'' with links? I''ve got a feeling that I''ll be seeing plenty of links from theonion.com.