us trustee objects to management compensation
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mike33
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The US Trustee has objected to several things in this bankruptcy and I believe they have not prevailed on any of them. Horton's $20 million will not be paid during the bankruptcy and thus, limits on compensation contained in the Bankruptcy Code are likely irrelevant, as Harvey Miller has pointed out.
eolesen
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This is the management change you asked for, and it comes at a cost.
Void the compensation, and you void the entire separation agreement. That means Horton gets to stick around until his contract is bought out at full retail.
If Horton sticks around, then the whole deal starts to unwind. Personally, I don't care if the merger goes thru or not, but I suspect a few of you do.
Void the compensation, and you void the entire separation agreement. That means Horton gets to stick around until his contract is bought out at full retail.
If Horton sticks around, then the whole deal starts to unwind. Personally, I don't care if the merger goes thru or not, but I suspect a few of you do.
Hackman
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Full retail??? With AA is currently in bankruptcy? Should't his contract be subjected to full concessions and/or abbrogated like the peon AA union employee's were? Bought out in full retail sounds expensive, AA can't afford those increased management costs. $20 million could go to paint a number of aircraft with the new "Flying Pidgeon" logo. Before you say it, I know.....it's an iron clad contract and can't be touched. Concessions are just for workers, not management.
TWU informer
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Where were the "TWU" Bankruptcy Legal experts and how did they miss something so glaring?
You already posted it both on the AA & US boards, but it seems people are all ready and set to continue discussing the matter here.
Josh
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"Trustee Tracy Hope Davis says Congress intended to limit severance and retention payments to insiders in bankruptcy cases unless the bonuses are justified or severance payments are available to all full-time employees and aren't more than 10 times greater than payments to non-management workers."
So where's the AA lynch-mob?
Horton just sold all of his slaves to a slave dealer that is even worse and for only $19 million.
So where's the AA lynch-mob?
Horton just sold all of his slaves to a slave dealer that is even worse and for only $19 million.
At least someone is trying to keep them honest. Let them divulge a lot more details and maybe his take your #### and leave payment will be reduced. I think this is more for show than anything, although I would like to be pleasantly surprised if it is reduced. AA will find some damn loop hole to drive this through. As for stopping the merger? HA, that ship has sailed. If Tommy Boy is on the boat or not, it won't stop. I'm sure Parker can find him a janitorial engineer job at HDQ if he needs something to do.
eolesen
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No, the ship hasn't sailed. It hasn't been approved by the courts. And, until it closes, it only takes a 10 minute court appearance to undo it, as DL did when they said "the world has changed" and left Pan Am twisting in the wind.
WorldTraveler
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DL didn't invest anything additional in Pan Am but that was precisely the problem; PA couldn't stop the losses and burned thru the money DL invested in them and DL simply said they weren't going to invest anything else.
The case went to court and DL was found to have acted as it said it would. It bought equity in the reorganized Pan Am. It didn't say it would continue to support them forever.
Given all the talk about Latin America and AA's dominance there, it would have been interesting to know how much DL would have had to invest to keep PA alive in Latin America and then to know when they would have taken over the rest. The Latin America market might look very different today.
As for the US Trustee, they object to most everything like this.
But it also doesn't stop the payments from being made, esp. if the recovery for the rest of the creditors is as good as AA says it will.
Horton will cash the check and life will go on.
The case went to court and DL was found to have acted as it said it would. It bought equity in the reorganized Pan Am. It didn't say it would continue to support them forever.
Given all the talk about Latin America and AA's dominance there, it would have been interesting to know how much DL would have had to invest to keep PA alive in Latin America and then to know when they would have taken over the rest. The Latin America market might look very different today.
As for the US Trustee, they object to most everything like this.
But it also doesn't stop the payments from being made, esp. if the recovery for the rest of the creditors is as good as AA says it will.
Horton will cash the check and life will go on.
Horton's golden parachute is not going to stop the merger. Hell get something and then ride off into the sunset. His waste of space at AA is over. He is done screwing up this place.
If they can void our contracts then why wouldnt his be subject to the same treatment? Nothing is ironclad in BK.
The Unions agreed not to say anything. But I will!! Hope give me a call, have no problem testifying. He walks in, stays for a year, takes a company with $5billion in cash into BK, steals my pension, retiree medical and walks away with a $20 million bonus!!! No way, it aint right, the guy is a thief as far as I'm concerned.
