usairways reserves right to pursue wolf and companys payments

[oldiebutgoody]

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On 3/18/2003 6:41:48 PM usfliboi wrote:

Usairways today reported today that it would reserve the right to pursue payments made to wolf gang and nagin after it emerged from bk. It said the new board of directors would make the final decision based on among other things the ablity and capablity of the monies being returned. In other words,we wont see that money .
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[/blockquote]
I think the key here is that they must have dropped their request to "indemnify" some of the decisions made by the board. This can be huge, if shareholders or other creditors elect to sue them later on. This was the one major objection filed by the government to the company's POR.

 

[usfliboi]

Usairways today reported today that it would reserve the right to pursue payments made to wolf gang and nagin after it emerged from bk. It said the new board of directors would make the final decision based on among other things the ablity and capablity of the monies being returned. In other words,we wont see that money .

 

[Dea Certe]

Funny, they are perfectly willing to go after furloughed flight attendants for uniform expenses. Guess the pennies add up.

If Wolf, Gangwal and Nagin had a shred of decency, they'd return the money on their own. In light of other corporate scandals elsewhere, perhaps it would be prudent those three fork it over. Heaven only knows what might be discovered during an investigation that could prove very embarrassing.

Also, it just might give ALPA grounds for getting back their pensions that were actually earned and promised to them contractually.

 

[AgMedallion]

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On 3/18/2003 10:49:52 PM PineyBob wrote:
My "Gut" tells me that the "Gang of Wolf" were guilty of many financial hijinks, many at the expense of the average employee. I firmly believe the breeched their fiduciary responsibility to their shareholders and employees. If I am right the subsequent trials and depositions will reveal many things, ...----------------​

Some potentially fruitful areas would be possible kickbacks to Wolf in connection with the AB deal (Wolf has connections to the French aerospace/airline industry) and possible shenanigans involving the dumbass DC Air deal and Wolf''s boardroom buddy Johnson. I would doubt that Gangwal would have initiated any illegal moves, but he certainly benefitted financially from them. Shareholder and employee lawsuits are a possibility...anything to cost Wolf some hefty legal fees defending himself. 🙂 However, it wouldn''t surprise me if he had insurance to cover such expenses.

 

[35 Yrs and Counting]

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On 3/18/2003 1054 PM Dea Certe wrote:

Funny, they are perfectly willing to go after furloughed flight attendants for uniform expenses. Guess the pennies add up.

If Wolf, Gangwal and Nagin had a shred of decency, they''d return the money on their own. In light of other corporate scandals elsewhere, perhaps it would be prudent those three fork it over. Heaven only knows what might be discovered during an investigation that could prove very embarrassing.

Also, it just might give ALPA grounds for getting back their pensions that were actually earned and promised to them contractually.

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Dea Certe I hate to take away your tailwind but your statement “Also, it just might give ALPA grounds for getting back their pensions that were actually earned and promised to them contractuallyâ€￾ really doesn’t work here. The money that the Wolf and his cronies took was a contractual obligation and was also “earnedâ€￾. The problem is that the old Board of Directors never set any standards for their performance so they did ‘earnâ€￾ it. Hell they came to work everyday. The evidence is overwhelming because we couldn’t have gotten into this terrible position without their wonderful leadership and guidance. That money is a small percentage of the pension shortage and it’s a nice start but the rest is gone due to the stock market decline. It isn’t under somebody’s mattress. So I cant figure out where one would get the money back from. You could sue those three for the money they just received because they breached their fiduciary responsibility to the shareholders and employees etc. and perhaps put enough pressure on them to return it before we look for all of the skeletons in the closet. That money would “helpâ€￾ to start a supplemental plan and then through negotiations come up with a plan for additional funding that is acceptable to both sides. ALPA also shares some of the responsibility for this dilemma. They had choices years ago when the Company froze other group’s pensions but they would not hear of it. We can’t go back now and steal it from others past frozen funds because they are frozen and also still have to be funded so an alternative solution has to be found. ALPA doesn’t want to take that “Grounds forâ€￾ statement because it only opens a door to take theirs away with no alternative solution but just “Cause we don’t like you todayâ€￾.

 

[Dea Certe]

35Years,

You have a point. Thanks.

I would like to know what were the terms of the W & G''s contract. Surely it had to be more than show up every day.

Did they meet goals, if any? Did they contribute anything of value to the company? I don''t think paint jobs count.

Wolf did get us one of the best Frequent Flyer plans around at the time.

The Airbus deal is still up for debate, if you ask me. The details of any kickback Wolf got would be most interesting to know. From what I''ve heard from the mechanics, getting support from Airbus is like pulling teeth.

Sabre hasn''t been a rollicking success, that was Gangwal''s deal. I suppose it did save us all from the dreaded Y2K collapse of Pacer.

I guess what really burns me up is we have pilots who flew their entire careers at U. I mean, they worked their trips, got their pax and crew safely from point A to point B for many years. They were contractually promised a certain amount upon their FAA mandated retirement at age 60. W&G show up for less than six years and got Millions. And that last $35 Mil was torn off a nearly dead entity. I''d just like to know how the BOD determined that amount, based on what merit. I''d happily show up every day for six years and dink around with "stuff" for than kind of dough. I''d even drive myself to work, no limosine needed. No drama/crisis daily either!

 

[35 Yrs and Counting]

My My MY we have a twitch in the mouse finger..

Yes I do understand the pilots plight on the retirement and all your points on the Three Stooges.

 

[mlt]

It would be very interesting to read the terms of their agreement. The thing that I don''t understand...was the payment a lump-sum retirement or in lieu of lost stock? My guess is that it has to be lost stock. After all Mr. Gangwal had been off the property for several months when this payment was made. Certainly it was not ''coincidentally'' scheduled to be paid out days before the bankruptcy filing.

Also, if I remember correctly, didn''t the BOD and Officers receive some sort of insurance policy last fall to protect them in the event of future lawsuits? Anyone willing to shed light on these policies?

 

[Dea Certe]

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On 3/19/2003 2:39:30 PM 35 Yrs and Counting wrote:

My My MY we have a twitch in the mouse finger..

Yes I do understand the pilots plight on the retirement and all your points on the Three Stooges.

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35 Years,

If you were referring to me, perhaps carpal tunnel syndrome is setting in. I pop a lotta soda cans on the job, ya know!

 

[PITbull]

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On 3/19/2003 2:52:41 PM mlt wrote:

It would be very interesting to read the terms of their agreement. The thing that I don't understand...was the payment a lump-sum retirement or in lieu of lost stock? My guess is that it has to be lost stock. After all Mr. Gangwal had been off the property for several months when this payment was made. Certainly it was not 'coincidentally' scheduled to be paid out days before the bankruptcy filing.

Also, if I remember correctly, didn't the BOD and Officers receive some sort of insurance policy last fall to protect them in the event of future lawsuits? Anyone willing to shed light on these policies?

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From my understanding, they asked the judge in October for Senior officers to be granted "indemnification" agreements that protected them from any lawsuits for any business decisions; but did NOT include protection from any kind of malfeasance. This indemnification included the BOD, and it was a "motion" that was granted.

With regard to the pay out for W/G/N and two others, this was a pension "lump sum", triggered in their contract. That's my understanding of it when it was explained by a high level employee at CCY.