N328KF From United States of America, joined May 2004, 6226 posts, RR: 3 Posted (7 years 7 months 2 weeks 4 days 20 hours ago) and read 2394 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
Cadet57 From United States of America, joined Jul 2005, 9081 posts, RR: 34 Reply 1, posted (7 years 7 months 2 weeks 4 days 19 hours ago) and read 2363 times:
So in laymans terms, what does this mean? Does that mean the govt have a say in the operations?
Doors open, right hand side, next stop is Springfield.
LAXDESI From United States of America, joined May 2005, 5085 posts, RR: 48 Reply 3, posted (7 years 7 months 2 weeks 4 days 19 hours ago) and read 2333 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.
N1120A From United States of America, joined Dec 2003, 25869 posts, RR: 79 Reply 4, posted (7 years 7 months 2 weeks 4 days 19 hours ago) and read 2326 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
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
N328KF From United States of America, joined May 2004, 6226 posts, RR: 3 Reply 5, posted (7 years 7 months 2 weeks 4 days 19 hours ago) and read 2313 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.
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, 5085 posts, RR: 48 Reply 6, posted (7 years 7 months 2 weeks 4 days 19 hours ago) and read 2303 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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