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Topic: US Govt To Own 15-35% Of UA, 7% Of US, Also NW/DL
Username: N328KF
Posted 2005-11-03 17:56:09 and read 4006 times.

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.

Topic: RE: US Govt To Own 15-35% Of UA, 7% Of US, Also NW/DL
Username: Cadet57
Posted 2005-11-03 18:00:04 and read 3975 times.

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

Topic: RE: US Govt To Own 15-35% Of UA, 7% Of US, Also NW/DL
Username: Zvezda
Posted 2005-11-03 18:00:42 and read 3967 times.

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?

Topic: RE: US Govt To Own 15-35% Of UA, 7% Of US, Also NW/DL
Username: LAXDESI
Posted 2005-11-03 18:04:54 and read 3945 times.

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.

Topic: RE: US Govt To Own 15-35% Of UA, 7% Of US, Also NW/DL
Username: N1120A
Posted 2005-11-03 18:06:24 and read 3938 times.

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

Topic: RE: US Govt To Own 15-35% Of UA, 7% Of US, Also NW/DL
Username: N328KF
Posted 2005-11-03 18:09:56 and read 3925 times.

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

Topic: RE: US Govt To Own 15-35% Of UA, 7% Of US, Also NW/DL
Username: LAXDESI
Posted 2005-11-03 18:12:03 and read 3915 times.

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.


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