TWU.....Transparency Now on Equity Distribution!

[HMK]

On January 3rd, Local 591 President Gary Peterson put out a letter requesting that we hold off on our appeal. Based on what the TWU has told us, the amount of our initial equity share distribution was 52%. We want to understand how they arrived at the number of shares distributed.
 
The appeal is to make the TWU provide us with the correct numbers.  The TWU continues to refute our request for the parameters to the Equity Distribution plan that was implemented in July 2013, particularly the straight time all in payroll rate and aggregate M&R service rate. All they provided us with, was a formula using projected (not actual) numbers.
 
We know the following, the Pilots and F/A received notification of their formulas and parameters prior to the Equity Distribution of Dec. 9 as stated on their websites. Even our management knew of its own distribution parameters prior to the actual distribution.
 
We must ask ourselves, why hasn’t the TWU provided us the with the same information? Why are they delaying this simple request? Shouldn’t the TWU be held accountable to its members and show clarity?
 
As members we should know now and not have to wait!
 
In Solidarity,
 
[SIZE=11pt]Howard Klein[/SIZE]

 

[1AA]

Thank you Mr. Klein for your informative post. As we all know the TWU will never hold itself accountable to the membership like the APFA and APA have done in the past. As long as the International Officers of the TWU continue to be appointed the accountability to the membership will never happen. The APA and the APFA have elected officers at the top and they are help accountable to the membership. I mailed my appeal forms early this morning via Certified mail, return receipt requested. 
 
My concern is if the error was made and we get the adjusted shares at what price per share? $22.45 is less than what it is trading at. So do we lose out on shares and potential investment gains if the adjustment comes in at a higher price per share? We should have had the correct amount of shares December 9th 2013. This is another way the TWU is screwing its members and we continue to do nothing about it.
 
I hope this topic does not drift and informative individuals can post updates and points of view.
 
Again thank you for letting us know how all the unions on the property are handling this Equity shares distribution.

 

[NYer]

Thank you Mr. Klein for your informative post. As we all know the TWU will never hold itself accountable to the membership like the APFA and APA have done in the past. As long as the International Officers of the TWU continue to be appointed the accountability to the membership will never happen. The APA and the APFA have elected officers at the top and they are help accountable to the membership. I mailed my appeal forms early this morning via Certified mail, return receipt requested. 
 
My concern is if the error was made and we get the adjusted shares at what price per share? $22.45 is less than what it is trading at. So do we lose out on shares and potential investment gains if the adjustment comes in at a higher price per share? We should have had the correct amount of shares December 9th 2013. This is another way the TWU is screwing its members and we continue to do nothing about it.
 
I hope this topic does not drift and informative individuals can post updates and points of view.
 
Again thank you for letting us know how all the unions on the property are handling this Equity shares distribution.

 
The initial shares were distributed using the $22.55 as a price point. As we move forward and we potentially receive more shares there would certainly be adjustments made to ensure we receive the value we are meant to receive. The TWU, as a whole will receive shares that equal in value of approximately $330M. (the amount of value lost in the ratified CBA's)

 

[AANYER]

We are simply asking the TWU to make available, not just the formula as per their July 16, 20013 "Equity Distribution Plan", but we need the "Total M&R Hourly Straight time all in Payroll Rate" and "The Aggregate M&R Service Rate", which they knew since July 16, 2013.  This is troublesome.  What is there to hide? Why aren't members being treated with respect and honesty? Why are they not detailing to us the transparency of the formula and the parameters?  TWU, make this information available immediately and lift the vail of secrecy behind the TWU Equity Distribution Shares. What did we receive 52% of?
 
Mike

 

[AANYER]

MR. NYer, The following is public knowledge, The TWU is receiving the following Equity to be distributed:
 
We  know that the total common shares issued for The “ALL” Group was 756,060,441. AMR Share holders received 72% (544,361,324) and USAir Shareholders received 211,698,617. Please see the details below for the further breakdown of TWU’s portion of the shares:
 
·       TWU received 4.8% of the 544 million shares              26,129,368
·       5% Reserves                                                                1,306,468.38
·       Shares held for Expenses                                             25,202
·       Shares Net of Reserves and Expenses                         24,797,697.17
·       M&R Receives 55.46% of the 24.7 million                   13,753,943.55
·       Stock price on distribution                                             $22.55
 
Additionally, We know the following details; TWU was issued the following shares on December 9, 2013,
 
·       Actual Shares issued to TWU                                      7,899,874
·       Actual shares held for expenses                                      25,202
·       Actual shares held for 757 Grievance                           136,810
·       Actual shares held for Reserve                                      394,994
·       Total shares actually received by TWU (32.37%)         8,456,880

 

[FWAAA]

The initial shares were distributed using the $22.55 as a price point. As we move forward and we potentially receive more shares there would certainly be adjustments made to ensure we receive the value we are meant to receive. The TWU, as a whole will receive shares that equal in value of approximately $330M. (the amount of value lost in the ratified CBA's)

The $330 million estimate is dated.   The steep rise in share price over the last few months means that the TWU's 4.8% share is likely worth about double that earlier estimate.   
 
The TWU will get 4.8% of the 72% allocated to the AA constituents.   Nobody knows how many shares that will be, as increases or decreases in share price between Dec 9 and early April will cause the total number of shares issued to decrease or increase.   Non-employee unsecured creditors are owed a fixed dollar amount and the number of shares to satisfy their fixed dollar claims won't be known until the 120-day mark.
 
The TWU estimated that M&R will get approximately 54.63% of the total TWU shares, with the other workgroups (fleet, dispatch, simtech, etc) splitting the rest.    
 
While the total number of shares issued by AAL won't be known until early April, it's estimated to be about 756 million, with AA stakeholders getting about 544 million of that total.   The rest were issued to the holders of LCC (about 211.7 million shares).   
 
The TWU will get 4.8% of the AA share, or about 26 million shares.   M&R will get about 54.63% of those, or about 14.2 million shares.    Today, those 14.2 million shares are worth about $26.54/sh, or almost $377 million.   

 

[AANOTOK]

MR. NYer, The following is public knowledge, The TWU is receiving the following Equity to be distributed:
 
We  know that the total common shares issued for The “ALL” Group was 756,060,441. AMR Share holders received 72% (544,361,324) and USAir Shareholders received 211,698,617. Please see the details below for the further breakdown of TWU’s portion of the shares:
 
·       TWU received 4.8% of the 544 million shares              26,129,368
·       5% Reserves                                                                1,306,468.38
·       Shares held for Expenses                                             25,202
·       Shares Net of Reserves and Expenses                         24,797,697.17
·       M&R Receives 55.46% of the 24.7 million                   13,753,943.55
·       Stock price on distribution                                             $22.55
 
Additionally, We know the following details; TWU was issued the following shares on December 9, 2013,
 
·       Actual Shares issued to TWU                                      7,899,874
·       Actual shares held for expenses                                      25,202
·       Actual shares held for 757 Grievance                           136,810
·       Actual shares held for Reserve                                      394,994
·       Total shares actually received by TWU (32.37%)         8,456,880

Very interesting!

 

[NYer]

MR. NYer, The following is public knowledge, The TWU is receiving the following Equity to be distributed:
 
We  know that the total common shares issued for The “ALL” Group was 756,060,441. AMR Share holders received 72% (544,361,324) and USAir Shareholders received 211,698,617. Please see the details below for the further breakdown of TWU’s portion of the shares:
 
·       TWU received 4.8% of the 544 million shares              26,129,368
·       5% Reserves                                                                1,306,468.38
·       Shares held for Expenses                                             25,202
·       Shares Net of Reserves and Expenses                         24,797,697.17
·       M&R Receives 55.46% of the 24.7 million                   13,753,943.55
·       Stock price on distribution                                             $22.55
 
Additionally, We know the following details; TWU was issued the following shares on December 9, 2013,
 
·       Actual Shares issued to TWU                                      7,899,874
·       Actual shares held for expenses                                      25,202
·       Actual shares held for 757 Grievance                           136,810
·       Actual shares held for Reserve                                      394,994
·       Total shares actually received by TWU (32.37%)         8,456,880

 
Sure, what we don't know is what are the price points in which the Preferred Stockholders (old AMR stockholders) receive a higher percentage of the available shares. They are guaranteed 3.5% with that percentage rising as the price of the shares shares rise. As they receive more shares that available shares for everyone else shrinks.
 
We don't receive 4.8% of the 544M shares, we receive 4.8% of the "outstanding shares" which comes after the Preferred Stockholders get theirs.
 
All creditors will receive 100% of their lost value...no more.

 

[NYer]

The $330 million estimate is dated.   The steep rise in share price over the last few months means that the TWU's 4.8% share is likely worth about double that earlier estimate.   
 
The TWU will get 4.8% of the 72% allocated to the AA constituents.   Nobody knows how many shares that will be, as increases or decreases in share price between Dec 9 and early April will cause the total number of shares issued to decrease or increase.   Non-employee unsecured creditors are owed a fixed dollar amount and the number of shares to satisfy their fixed dollar claims won't be known until the 120-day mark.
 
The TWU estimated that M&R will get approximately 54.63% of the total TWU shares, with the other workgroups (fleet, dispatch, simtech, etc) splitting the rest.    
 
While the total number of shares issued by AAL won't be known until early April, it's estimated to be about 756 million, with AA stakeholders getting about 544 million of that total.   The rest were issued to the holders of LCC (about 211.7 million shares).   
 
The TWU will get 4.8% of the AA share, or about 26 million shares.   M&R will get about 54.63% of those, or about 14.2 million shares.    Today, those 14.2 million shares are worth about $26.54/sh, or almost $377 million.   

 
The MAXIMUM the Creditors can receive is the value they lost. The amount lost by the TWU, in value from their CBA's is $330M. That's the maximum we value we can receive. After all the Creditors are paid off, the Preferred Shareholders (old AMR stakeholders) receive the profits.

 

[FWAAA]

The MAXIMUM the Creditors can receive is the value they lost. The amount lost by the TWU, in value from their CBA's is $330M. That's the maximum we value we can receive. After all the Creditors are paid off, the Preferred Shareholders (old AMR stakeholders) receive the profits.

Non-employee unsecured creditors (eg, Boeing, HP, trade creditors) are limited to a fixed dollar value, which will be paid in stock.    Eagle employees also settled their claims for a fixed dollar value (to be paid in stock).
 
They will get their fixed dollar value.   The AA employee claims (APA, TWU and APFA plus agents, management and support staff) will get their percentage of the total number of shares issued.   Nobody knows how many total shares will be issued, since price fluctuations will alter the number of shares needed to satisfy the non-employee fixed dollar value claims.
 
The holders of old AMR will get their guaranteed 3.5% of the 72% and it's very likely they'll get a whole lot more - since they are entitled to what's left after the creditors are paid and the employee percentages are satisfied.   
 
The TWU is NOT limited to any specific dollar value.   Period.   

 

[NYer]

 
The MAXIMUM the Creditors can receive is the value they lost. The amount lost by the TWU, in value from their CBA's is $330M. That's the maximum we value we can receive. After all the Creditors are paid off, the Preferred Shareholders (old AMR stakeholders) receive the profits.

 

The $330 million estimate is dated.   The steep rise in share price over the last few months means that the TWU's 4.8% share is likely worth about double that earlier estimate.   
 
The TWU will get 4.8% of the 72% allocated to the AA constituents.   Nobody knows how many shares that will be, as increases or decreases in share price between Dec 9 and early April will cause the total number of shares issued to decrease or increase.   Non-employee unsecured creditors are owed a fixed dollar amount and the number of shares to satisfy their fixed dollar claims won't be known until the 120-day mark.
 
The TWU estimated that M&R will get approximately 54.63% of the total TWU shares, with the other workgroups (fleet, dispatch, simtech, etc) splitting the rest.    
 
While the total number of shares issued by AAL won't be known until early April, it's estimated to be about 756 million, with AA stakeholders getting about 544 million of that total.   The rest were issued to the holders of LCC (about 211.7 million shares).   
 
The TWU will get 4.8% of the AA share, or about 26 million shares.   M&R will get about 54.63% of those, or about 14.2 million shares.    Today, those 14.2 million shares are worth about $26.54/sh, or almost $377 million.   

 
The $330M is not an estimated amount. It is the amount needed to make, under legal terms, "full recovery" of the lost value in the BK. (although it doesn't include interest, which is also part of the recovery)
 
The TWU does NOT get 4.8% from the 544M of the AA Stakeholders portion. In that group is the preferred stockholder who get a higher percentage of the shares ifrom that pool which means the TWU (and other Creditors) get 4.8% of what is available AFTER the preferred stockholders get their piece of the pie.
 
Equity is meant to give the Creditors UP TO 100% of recovery (plus interest) which means we get the amount of shares needed to satisfy the $330M in lost value (plus interest) from the CBA's. The Preferred Stockholders get the rest.
 
During the Equity Roadshow, the estimated amount of shares to be distributed to the TWU was 23M at $14.50 per share for a total of $334M.

 

[NYer]

Non-employee unsecured creditors (eg, Boeing, HP, trade creditors) are limited to a fixed dollar value, which will be paid in stock.    Eagle employees also settled their claims for a fixed dollar value (to be paid in stock).
 
They will get their fixed dollar value.   The AA employee claims (APA, TWU and APFA plus agents, management and support staff) will get their percentage of the total number of shares issued.   Nobody knows how many total shares will be issued, since price fluctuations will alter the number of shares needed to satisfy the non-employee fixed dollar value claims.
 
The holders of old AMR will get their guaranteed 3.5% of the 72% and it's very likely they'll get a whole lot more - since they are entitled to what's left after the creditors are paid and the employee percentages are satisfied.   
 
The TWU is NOT limited to any specific dollar value.   Period.   

 
Sure they are. Read the Plan of Reorganization. They are to receive "up to 100% of their full recovery." Just like the rest of the Creditors.

 

[Vortilon]

I see where Gary Peterson (local 591 pres.) is requesting the TWU International investigate the discrepancy with the equity distribution.  Isn't that sorta like having the fox do the audit on the hen house?  I can just see the results of the International's investigation now "everything is ok, nothing to see here" yada yada.

 

[FWAAA]

Sure they are. Read the Plan of Reorganization. They are to receive "up to 100% of their full recovery." Just like the rest of the Creditors.

I've read it.   Nowhere does it limit the employee groups to any fixed dollar amounts.   

 

[AANYER]

Nyer,
 
Please let's stay on topic.  However, TWU was projected to receive around 23 millions shares when USAir stock price was around $14.50 per share.  There was a 64% appreciation in the stock value to $22.55.  This is the reason the TWU is receiving approximately 26.1 million shares to be distributed, before reserves and expenses.  Just a bit more data, as it relates to your statement about TWU's CBA losses, TWU lost 233.1 million dollars per year for six years of the current contract betwixt and between Scope and Pension alone. The equates to $1,398,600,000 billion over the six year contract. Please read a little more before you issue incorrect data and information.  This is at the essence of why we received the 4.8% of the 544 million shares.  It does not come close to what TWU gave up in this contract. Gentlemen, I'm schooled on this information.  Let's stick to the initial post, please do not stray.  We are asking for the parameters to the formula.