In a statement to the bankruptcy court, US Airways' Creditors Committee's said in regard to the Company's request for 1113(e) relief, "The Debtors' much publicized need for immediate and sizeable cost savings from its employees is, unfortunately, very real. The survival of these Debtors, and the preservation of approximately 34,000 jobs, depends upon these Debtors' ability to successfully reorganize as a healthy, viable airline. Although this Committee wishes that it could be accomplished otherwise, it is painfully obvious that in the absence of a negotiated agreement with the Debtors' labor forces, the Debtors' only alternative to achieve its critical cash needs is to seek the relief sought in the Pension Motion and the 1113 Motion.
The unfortunate reality of these cases is that these Debtors must quickly make necessary efforts to stymie their cash losses in order to survive. Unless the Debtors "right the ship" quickly, all stakeholders will likely suffer. It is especially painful for the employees of this airline to again be forced to make sacrifices after having recently made sacrifices in the Debtors' prior bankruptcy proceedings. That painful reality is not lost on this Committee."
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Judge Mitchell told the courtroom "The real question is when -- you know, a motion like this, which is sort of like a motion for temporary injunction, but with some very serious consequences since it does more than simply maintain the status quo, it gores somebody's ox.
If as a practical matter, even if it technically compiles with the rules -- the rules are the rules, but one size doesn't always fit all. If there is a need to, for example, defer cross examination or allow cross examination to remain open while they conduct some discovery, I am certainly to give these people who have a great deal at stake an adequate opportunity to prepare and present their case.
I'm not going to be rushed to judgment on it. I just want to make that clear from the outset. I'm not bound by anybody's deadline. I want to do what's right. I want to do what is fair. I want to see this airline survive. And if granting this motion is the way to do it, I will do it, but only after I have given the other side a fair opportunity to prepare and present their case."
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Union attorneys argued the court should take equitable considerations into consideration, but the 1113(e) statute only refers to whether the relief is essential and it is my understanding no argument was provided on the important issue of the economic need for relief. Therefore, informed sources believe the court will rule in support of the Creditors Committee and the Debtor (the Company) in favor of the S.1113(e) motion and pension changes.
Respectfully,
USA320Pilot
The unfortunate reality of these cases is that these Debtors must quickly make necessary efforts to stymie their cash losses in order to survive. Unless the Debtors "right the ship" quickly, all stakeholders will likely suffer. It is especially painful for the employees of this airline to again be forced to make sacrifices after having recently made sacrifices in the Debtors' prior bankruptcy proceedings. That painful reality is not lost on this Committee."
__________
Judge Mitchell told the courtroom "The real question is when -- you know, a motion like this, which is sort of like a motion for temporary injunction, but with some very serious consequences since it does more than simply maintain the status quo, it gores somebody's ox.
If as a practical matter, even if it technically compiles with the rules -- the rules are the rules, but one size doesn't always fit all. If there is a need to, for example, defer cross examination or allow cross examination to remain open while they conduct some discovery, I am certainly to give these people who have a great deal at stake an adequate opportunity to prepare and present their case.
I'm not going to be rushed to judgment on it. I just want to make that clear from the outset. I'm not bound by anybody's deadline. I want to do what's right. I want to do what is fair. I want to see this airline survive. And if granting this motion is the way to do it, I will do it, but only after I have given the other side a fair opportunity to prepare and present their case."
__________
Union attorneys argued the court should take equitable considerations into consideration, but the 1113(e) statute only refers to whether the relief is essential and it is my understanding no argument was provided on the important issue of the economic need for relief. Therefore, informed sources believe the court will rule in support of the Creditors Committee and the Debtor (the Company) in favor of the S.1113(e) motion and pension changes.
Respectfully,
USA320Pilot
