Update on Alabama Pension Fund Offer To Invest In US Airways

Aug 29, 2002
196
0
www.usaviation.com
So Chip..will this help or hurt the employees?
 
C

chipmunn

Guest
[A href=http://money.excite.com/jsp/nw/nwdt_ge.jsp?news_id=cmt-262w5940&feed=cmt&date=20020919]http://money.excite.com/jsp/nw/nwdt_ge.jsp?news_id=cmt-262w5940&feed=cmt&date=20020919[/A]
 
C

chipmunn

Guest
[FONT face=Times New Roman size=3]David Bronner, chief executive of the pension fund, predicted US Airways would fully reorganize under Chapter 11 by January and that the investment would be well worth it. [BR][BR]The minute it comes out of bankruptcy, it will be worth $1.5 billion to $2 billion, Bronner said. Bronner said the offer starts a 60-day due diligence period during which others can make offers, raising the possibility of a bidding war for control of the airline. [BR][BR]Chip comments: [BR][/FONT]
[UL]
[LI][FONT face=Times New Roman size=3]I believe the Alabama Pension Fund interest in offering to be the equity investor and to own 37.5 percent of the company has more to do with the fact the investor was forced by the court to take back approximately 23 F-100s worth an estimated $340 million after Bronner was unwilling to restructure the EETCs.[BR][/FONT]
[LI][FONT face=Times New Roman size=3]The bankruptcy court must decide who will be the best investor and who will provide the greatest return for the creditors. TPG is an established turnaround company with a strong airline track record, which Bronner and his Fund are not.[BR][/FONT]
[LI][FONT face=Times New Roman size=3]US as the debtor-in-possession will have a significant say in who ultimately becomes in the investor.[BR][/FONT]
[LI][FONT face=Times New Roman size=3]If some sort of transaction occurs with UAL, TPG could be the financier.[/FONT][/LI][/UL][FONT face=Times New Roman size=3]Needless to say, there will be more to this story that will likely be heard at the Fourth Omnibus Hearing, now scheduled for December 12. In regard to hurting or helping employees, at this point nobody knows for sure due to the uncertainty of other bidders emerging, such as people like Marvin Davis or even Carl Icahn. Nonetheless, reports indicate the company and TPG anticipated other offers and are likely prepared to deal with this issue. [BR][BR]Chip[BR][/FONT]
 

UAL777flyer

Veteran
Aug 20, 2002
730
0
Carl Icahn? Now there is an absolutely earth-rattling scary thought. Imagine the mis-management of US Airways under the Wolf and Gangwal regime. Then multiply that by about 10 and you start to get an idea of what Icahn would do to your company.
 

curious

Member
Aug 20, 2002
20
0
I thought Carl Icahn was barred from having anything to do with aviation management or investing? Or was it Lorenzo? Either way both are a nightmare I don't want around.
 

oldiebutgoody

Veteran
Aug 23, 2002
2,627
945
www.usaviation.com
[blockquote]
----------------
On 9/19/2002 3:45:27 PM curious wrote:

I thought Carl Icahn was barred from having anything to do with aviation management or investing? Or was it Lorenzo? Either way both are a nightmare I don't want around.
----------------
[/blockquote]
I think that ANY government related agency, ATSB, FTC, etc. will have serious problems with either of these two attempting to get back into the airline business, considering how they RAPED their previous charges. I don't think that an offer with either of these names attached would be seriously considered by the court.
 

ChairPrefRes

Member
Aug 19, 2002
89
0
An update with more information on the pension fund filing reported by Reuters is that the deck is stacked against other bidders because the 700 million in DIP financing is tied to TPG...soooooooo they are asking the court not to approve this...they don't want to have to finance they're own dip just ride someone-elses coat tails...I would rate their bid at this point as not serious...Looks like we have a smart group of people that have put the TPG bid together...Amateurs beware
9.gif']
 

Black Wind

Member
Sep 21, 2002
33
0
www.usaviation.com
[P]
[BLOCKQUOTE][BR]----------------[BR]On 9/19/2002 6:55:46 PM ChairPrefRes wrote:
[P]I would rate their bid at this point as not serious...Looks like we have a smart group of people that have put the TPG bid together...Amateurs beware [IMG src=http://www.usaviation.com/idealbb/images/smilies/9.gif] [/P]
[P]----------------[/P]
[P][STRONG]It would appear copied several pages from AMR's bankruptcy playbook vis a vis the fees and associated costs.[/STRONG][/P]
[P][STRONG]Don't sweat it. The court in most instances, goes with the choice the debtor prefers.They did with AA/TWA, much to the ultimate detriment of the TWA employees.[/STRONG][/P][/BLOCKQUOTE]
[P][/P]
 

N513AU

Advanced
Aug 20, 2002
219
0
[blockquote]
----------------
On 9/19/2002 3:45:27 PM curious wrote:

I thought Carl Icahn was barred from having anything to do with aviation management or investing? Or was it Lorenzo? Either way both are a nightmare I don't want around.
----------------
[/blockquote]

It was Lorenzo, Dave Siegel's mentor. Ichan could be in the wings, but I think we would have heard if he was sniffing around. Ichan, Wolf and Gangwal should all be forever barred from this business for raping and pillaging airlines, at the expense of the investors, passengers and employees. I really hope that this bankrupcy hearing pulls up some Enron/WorldCom/TYCO-like dirt on W&G's leadership of US Airways. I'd like to see Rakesh and Steve trade their wine cellars for prison coffee. Hmmm, wouldn't it be neat to see a Wolf Chairman's Corner column in Attache with him wearing a prison jumpsuit?

I can dream, can't I?
 

mrplanes

Advanced
Sep 17, 2002
224
0
Lorenzo is Siegel's mentor? You must be out of your mind. If he was Lorenzo, you would not have a retirement, NEGOTIATED agreement or even a hope for a future. Lorenzo was a destroyer. Siegel is attempting to rebuild us based on the future of this industry. No one knows if he will be successful but he is a FAR cry from Lorenzo.
 

UAL777flyer

Veteran
Aug 20, 2002
730
0
I agree. Saying that Lorenzo was Siegel's mentor has to be one of the most ridiculous comments I've heard in a long time.