[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]
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[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]