Rob:
On Friday, November 22, US Airways filed a motion with the bankruptcy court for the airline to have the sole right to file a Chapter 11 Plan of Reorganization through January 31, 2003.
According to Dow Jones, the filing said the carrier and its debtor entities fully intend, and are indeed obligated under various agreements, to file their plan of reorganization and disclosure statement before December 31. Also, US Airways said it expects it will file the plan and disclosure statement well before the year end in order to get court approval of the disclosure statement at a hearing scheduled for January 16, 2003.
Also notewrothy, court papers said the unsecured creditors' committee, which ALPA and the IAM are members, agreed with the proposed bridge order.
On the surface, it would appear the airline is having difficulty completing its reorganization, but it appears the airline has timed this motion with its intent to obtain union contract relief.
US Airways will meet with all of its labor leaders at 10:00 AM on November 26. According a recorded ALPA message on November 23, the agenda is for management to update labor on the US Airways’ ideas on potential solutions to the current problems the company is facing.
Reports indicate the company will provide the unions with one week, or until December 3 to reach voluntary concession accords on productivity and retirement changes, or the company can provide 60-day legal notice to terminate the defined benefit pension plans. If this occurs on December 3, 60 days will be January 30, 2003 or the same date the airline asked the bankruptcy court to extend its sole right to file a Chapter 11 Plan of Reorganization. Coincidental?
Chip