The Wall Street Journal had an article stating that, because of taking over the pension funds, the U.S. Government will own 7% of US, between 15-35% of UA, and also will hold similar stakes in NW and DL. (Delphi was also mentioned.) It's done this in the past with Polaroid and other companies, and taxpayers made out big.

The Government waits until the stock has appreciated significantly, and then sells out. It sounds like the untold story behind pension fund takeovers by the U.S. Government.

So in laymans terms, what does this mean? Does that mean the govt have a say in the operations?

How does that work? Do the pension funds own stock in these companies? If so, wouldn't that stock become worthless upon exiting Chapter 11?

Quoting Cadet57 (Reply 1): So in laymans terms, what does this mean? Does that mean the govt have a say in the operations?

They will be like other shareholders, with no role in day to day operations. However, they may be in a position to appoint independent directors to the board and have a say in overall strategy.

Quoting Zvezda (Reply 2): How does that work? Do the pension funds own stock in these companies? If so, wouldn't that stock become worthless upon exiting Chapter 11?

The Federal Government takes a stake in the airline AFTER exiting. Part of the deal for taking over the pensions is a stake in the reorganized company

The Government is considered an unsecured creditor, and becomes part of the bankruptcy board. The Government is allocated stock after, not before exiting bankruptcy.

Quoting Zvezda (Reply 2): If so, wouldn't that stock become worthless upon exiting Chapter 11?

In Chapter 11 they would be able to void/renegotiate labor, equipment lease, and other contracts which could result in higher profitability. Therefore, if all goes well, shareholders could see a rise in the value of their holdings after exiting Chapter 11.