N328KF From United States of America, joined May 2004, 6491 posts, RR: 3 Posted (9 years 1 month 3 weeks 3 days 9 hours ago) and read 4026 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.
When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
LAXDESI From United States of America, joined May 2005, 5086 posts, RR: 47
Reply 6, posted (9 years 1 month 3 weeks 3 days 8 hours ago) and read 3935 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.