Rez Agent:
Investors are not going to put money into a company who cannot get its unions to provide required concessions to obtain the contractual DIP financing, emergence financing, and the loan guarantee. Why throw away your money on a failing enterprise?
In fact, the company has gotten investors to provide money: TPG, CSFB, & BOA. The problem is all three of these investors have contractual exit clauses that state without the company getting target labor concessions from all groups, there investment will not occur, which would prevent the company from having the funds to operate, restructure, and emerge.
Therefore, the only other possible options are for the creditors committee to find another investor like Marvin Davis and Carl Icahn, who will seek a strong ROI, and/or fragmentation/liquidation. Simply put, would you invest into a small compay who you believed would seek Chapter 7 liquidation?
Chip