Us Airways Reorganization Meets Resistance

[700UW]

US Airways reorganization meets resistance from creditors
Karen Ferrick-Roman, Times Staff
08/04/2005

The proposal that would lead US Airways out of bankruptcy has set off a flurry of bankruptcy court filings objecting to parts of the plan.

On Tuesday, the Allegheny County Airport Authority filed an objection to US Airways' request of allowing it to reject leases after the creditors already had voted whether to approve the plan.

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[delldude]

US Airways reorganization meets resistance from creditors
Karen Ferrick-Roman, Times Staff
08/04/2005

The proposal that would lead US Airways out of bankruptcy has set off a flurry of bankruptcy court filings objecting to parts of the plan.

On Tuesday, the Allegheny County Airport Authority filed an objection to US Airways' request of allowing it to reject leases after the creditors already had voted whether to approve the plan.

Click for Story

[post="285704"][/post]​

Both unions protested the airline's unilateral change to the profit-sharing plan, which they said had been negotiated in a contract. The unions pointed out that with most recent concessions reaching $130 million a year for the CWA and $116 million a year for the flight attendants, the profit-sharing plan had been seen as part of the union's give-and-take.

these unions,including IAM all signed off on vague wording and now they whine over what they agreed to??
CAVEAT EMPTOR :down:

 

[jimntx]

The Continental Airlines objection is especially problematic. If CO is able to reclaim its LGA gates, loss of LGA access would be a real problem for the new airline.

 

[ringmaruf]

The Continental Airlines objection is especially problematic. If CO is able to reclaim its LGA gates, loss of LGA access would be a real problem for the new airline.

[post="285709"][/post]​

It's not a problem. US defaulted on its prepetition payments at LGA, which CO then had to pay. US will assume the contract and make cure payments to CO, all as provided for in bankruptcy law.

The unions, on the other hand, might be a problem...but not with this judge.

 

[ClueByFour]

The unions, on the other hand, might be a problem...but not with this judge.

[post="285712"][/post]​

Really? Looks like a major event (unilateral modification of the contract, not under 1113 provisions).

That's not the real big question, tho: there is a very credible point that US is trying to get authority to continue to whack contracts after emergence. It's likely (based on the law) that won't happen.

It's further likely that by getting greedy, US won't get any of those conditions into the plan. It seems like the creditors should be sucessfull on the executory contract front (thus preventing more PIT-like shinnanegans this time around).

 

[robbedagain]

speaking of the greedy, were there any word from the judge on the greedy corporate a** holes at the top about the retention and bonus and severance? havent heard and I was wondering if that had anything to do with this upcoming hearing with the creditors?