Some Delta creditors form separate group

[USA320Pilot]

Some Delta creditors form separate group

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Regards,

USA320Pilot

 

[luv2fly]

Some Delta creditors form separate group

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Regards,

USA320Pilot

Interesting to note.
An unofficial committee that is not on the unsecured creditors committee.

 

[BoeingBoy]

And I can find only $17 million in claims by Deusche Bank and no claims by Lehman Brothers. Considering that it's estimated that the unsecured creditors will end up having between $7 & $10 Billion in claims, if the other "unlisted" members of this small group aren't more important this is much ado about nothing.....

Jim

 

[BoeingBoy]

Ok, here's these 9 creditors....

Avenue Capital Management
CarVal Investors, LLC
Deutsche Bank Securities, Inc.
GoldenTree Asset Management LP
Lehman Brothers Inc.
Marathon Asset Management
Silver Point Capital, LP
Trafelet & Co. LLC
York Capital Management

"The nature of the claims (the “Claimsâ€￾) held by members of the Unofficial Committee against Delta Air Lines, Inc. and certain of its above-captioned subsidiaries and affiliates (the “Debtorsâ€￾) includes, but is not limited to, claims in respect of unsecured obligations owed by the Debtors and claims in respect of securities issued by the Debtors. Paul Weiss cannot, at this time, specify the amount of these claims. Paul Weiss reserves the right to supplement this Statement as and when it is able to specify the amount and type of claims held by members of the Unofficial Committee and if and when additional members join the Unofficial Committee."

Jim

 

[abe]

And I can find only $17 million in claims by Deusche Bank and no claims by Lehman Brothers. Considering that it's estimated that the unsecured creditors will end up having between $7 & $10 Billion in claims, if the other "unlisted" members of this small group aren't more important this is much ado about nothing.....

Jim

BoeingBoy/Jim,

Your posts are always well thought-out and contain pertinent facts. I posed this question to USA320Pilot recently and am wondering what your thoughts are:

Many on this forum regard Delta as a sick, dying company....a BK carrier (no doubt), with supposedly horrible leadership and definitely with no future.

I see from your picture that you are a USAirways pilot. I'm curious...what do you think of Parker's plan? Do you think the synergy numbers add up/make sense? Do you see this thing going down without further labor pain suffered by either group? Do you want this deal?

That's definitely more than one question. But if you don't mind sharing, I'm really interested in your opinions.



Abe

 

[BoeingBoy]

Many on this forum regard Delta as a sick, dying company....a BK carrier (no doubt), with supposedly horrible leadership and definitely with no future.

Having no special insight and not having followed DL's bankruptcy very closely till now, I can't comment too much. DL has done some things that have impressed me - Simplifares, de-peaking the ATL hub, reducing CASM. Other things - dropping the DFW hub, tremendous international expansion - I have no clue whether they'll be positive long-term.

I see from your picture that you are a USAirways pilot.

Guess I really ought to do something about that - I retired last month....

I'm curious...what do you think of Parker's plan?

My initial impression remains unchanged - this proposed merger is almost the exact opposite of the US/HP merger.

In US/HP, there were real synergies that could be realized because the route networks overlapped so little. US covered the east with only service to major cities in the west. HP had pretty good coverage in the west but served only a relatively small number of cities in the east. The merger created a nationwide network, making US a viable choice for many people who wouldn't have either US or HP as being a potential sole provider of air travel. People looking for travel from Barstow to Boise might have considered HP but not US. Those wanting to go from Buffalo to Birgingham might have considered US but not HP. Those wanting to do both wouldn't consider either US or HP for their primary travel needs pre-merger. Post-merger they could.

US/DL, on the other hand, provides almost none of that. While the "New Delta" can take passengers to places that US cannot (except through alliances), where can "New Delta" take anyone that "Old Delta" couldn't (disregarding EAS markets which are monopoly by design).

Do you think the synergy numbers add up/make sense?

Well, there's two kinds of "synergies" - those that reduce cost and those that produce additional revenue....

Any merger should produce cost synergies - 1 headquarters vs 2, in theory less executives, greater purchasing leverage with suppliers, disposing of airplanes, etc. That the benefit of having at least one of the merger partners in bankruptcy - tearing up contracts, settling loans for pennies on the dollar, etc. I have no idea about the dollar amount claimed by Parker, but cost savings would be there.

On the other side - revenue synergies - I just don't see them coming from combining the route systems. As I said, where can the "New Delta" take someone that the "Old Delta" couldn't - not many places. That leaves one source for the almost $1 Billion in revenue synergies - less competition leading to higher load factors and higher average fares (and note that little word "average").

Do you see this thing going down without further labor pain suffered by either group?

I'll just quote what I wrote in the US forum, relating to Parker's talk of a 10% reduction to combined capacity and a 15% reduction in US capacity:
-----
After doing a little cyphering with the November traffic numbers, here's what a 10% reduction in combined US/DL capacity amounts to.....

Over 75% of West's entire mainline capacity, or

Almost 50% of East's entire mainline capacity, or

Almost 16% of DL's mainline capacity, or

over 85% of both US & DL's express capacity (although only about 40% is not under non-voidable contracts).

Of course, another way to look at it is to just see what the 15% reduction in US capacity means.....

Over 50% of West's mainline capacity, or

About 33% of East's mainline capacity, or

over 300% of wholly-owned Express capacity.

And this doesn't factor in the additional capacity coming to East (190's) and Express (175's at Republic) next year.
-----

Do you want this deal?

I'm just an outsider looking thru the window now. Having said that, I want whatever will give the employees (who really make any airline operate) a decent living and prospects for a decent career, without jeopardizing the long term viability of the company they work for.

Will the US/DL merger do that? I've got my doubts, although I think it would come closer for the US people than for the DL people.

Jim

 

[USA320Pilot]

Bondholders of Delta Air May Influence USAir’s Takeover Bid

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Regards,

USA320Pilot

 

[grkitalny]

Bondholders of Delta Air May Influence USAir’s Takeover Bid

See Story

Regards,

USA320Pilot

USA320Pilot-

This notion of "group" has been stated before and you've posted on about it 25 or so times. Time to come up with some new information.

 

[luv2fly]

Guess I really ought to do something about that - I retired last month....
Jim

You have every right to keep your picture. You have earned it. Congratulations.