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DL Panel May Ask USAirways To Extend Deadline  
User currently offlineAlitalia744 From United States of America, joined Mar 2000, 4731 posts, RR: 45
Posted (7 years 2 months 3 weeks 23 hours ago) and read 3199 times:

from bloomberg:

Quote:
Delta Panel May Ask US Airways to Extend Deadline (Update1)

By Mary Schlangenstein and Jeff St.Onge

Jan. 26 (Bloomberg) -- Delta Air Lines Inc.'s creditors may ask US Airways Group Inc. to extend the Feb. 1 deadline on its hostile takeover bid as they study competing plans for the bankrupt carrier's future, people familiar with the matter said.

http://www.bloomberg.com/apps/news?p...601087&sid=aY7bFGux3760&refer=home

thoughts?


Some see lines, others see between the lines.
11 replies: All unread, jump to last
 
User currently offlineGbfra From Germany, joined Sep 2006, 448 posts, RR: 1
Reply 1, posted (7 years 2 months 3 weeks 23 hours ago) and read 3192 times:

Good news for US.

The creditors consider the US offer as a serious option (among others) obviously, while some people on this forum thought otherwise.



The fundamental things apply as time goes by
User currently offlineDL787932ER From United States of America, joined Dec 2005, 597 posts, RR: 1
Reply 2, posted (7 years 2 months 3 weeks 23 hours ago) and read 3150 times:

Well, Doug parker said the creditors had to go forward by February 1, so there's no way he'd go back on his word like that  Yeah sure

Will that extension start to delay DL's bankruptcy exit? Until now this merger has just wasted people's time and energy, but delaying the process is what would really hurt the creditors. $25 billion in debt isn't going to make any more sense on Feb. 26th than it does today on Jan. 26th; it would be better for the creditors and the airline just to say nothing, let the Feb. 1st "deadline" roll over, and then move forward with the bankruptcy exit plan.

Or: might these sources just be talking about this?

Those objections are noted and will be dealt with, but aren't related to the US deal and probably won't delay anything; they just have to be negotiated.



F L Y D E L T A J E T S
User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 3993 posts, RR: 11
Reply 3, posted (7 years 2 months 3 weeks 23 hours ago) and read 3126 times:

There are clearly some of the creditors that want out on this, and to cut and run. And I also can't rule out that the group of unofficial creditors is exerting some pressure to be heard. The 4th quarter loss at UA also is a factor in all likelihood, even though UA making a profit for 2006 should be a positive for DL standing alone for the time being. Also, I highly doubt the creditors committee is a unified front completely in lock-step for a stand alone DL.


DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineCa2ohHP From United States of America, joined Sep 2005, 948 posts, RR: 1
Reply 4, posted (7 years 2 months 3 weeks 22 hours ago) and read 2979 times:

I'm curious if the various cities that have filed objections to Delta's plan will have any impact on the progress?

User currently offlineLCFreeman49 From United States of America, joined Jul 2006, 102 posts, RR: 0
Reply 5, posted (7 years 2 months 3 weeks 21 hours ago) and read 2862 times:

So if US Airways extend this deadline will be the begining of the due dilligence process in making this pipe dream a reality?


Thanks For Flying with Delta....
User currently offlineThegooddoctor From United States of America, joined Nov 2005, 523 posts, RR: 0
Reply 6, posted (7 years 2 months 3 weeks 20 hours ago) and read 2757 times:

Quoting Ca2ohHP (Reply 4):
I'm curious if the various cities that have filed objections to Delta's plan will have any impact on the progress?

Entirely possible - it's been stated that LAX is the biggest objector (they've had a beef with DL paying up for a while apparently). But DEN and a couple of other cities have likewise filed their grievances.

Quoting Gbfra (Reply 1):
The creditors consider the US offer as a serious option (among others) obviously, while some people on this forum thought otherwise

Those on this forum would read press releases from "Tempe based Delta Airlines" but would still be talking about how Delta can still make it out of this on their own  Wink



The GoodDoctor
User currently offlineNW748i From United States of America, joined Dec 2006, 361 posts, RR: 0
Reply 7, posted (7 years 2 months 3 weeks 17 hours ago) and read 2602 times:

Quoting Gbfra (Reply 1):
Good news for US.

The creditors consider the US offer as a serious option (among others) obviously, while some people on this forum thought otherwise.

I was at the TRB Meeting this week and sat in on a meeting with a few aviation consultants. One of the things mentioned was the high likelihood that US would up its offer one final notch. Certainly this would encourage Parker to do that. And what has Gordy been up to this week???

Quoting Thegooddoctor (Reply 6):
Those on this forum would read press releases from "Tempe based Delta Airlines" but would still be talking about how Delta can still make it out of this on their own

hahahaha!



Hail! to the victors valiant, Hail! to the conqu'ring heroes, Hail! Hail! to Michigan the leaders and best! Go Blue!
User currently offlineScottB From United States of America, joined Jul 2000, 6574 posts, RR: 32
Reply 8, posted (7 years 2 months 3 weeks 17 hours ago) and read 2584 times:

Quoting Thegooddoctor (Reply 6):
Those on this forum would read press releases from "Tempe based Delta Airlines" but would still be talking about how Delta can still make it out of this on their own

Actually, I think they'd be simply be taking their business to other airlines, much like many of US Airways' high-revenue passengers did last year and are doing this year. There is a reason US Airways ran its "Everything Counts" promotion for the last three months of 2006, and it's not because they had too many Preferred members.


User currently offlineDeltAirlines From United States of America, joined May 1999, 8867 posts, RR: 12
Reply 9, posted (7 years 2 months 3 weeks 17 hours ago) and read 2553 times:

Quoting ScottB (Reply 8):
Actually, I think they'd be simply be taking their business to other airlines, much like many of US Airways' high-revenue passengers did last year and are doing this year. There is a reason US Airways ran its "Everything Counts" promotion for the last three months of 2006, and it's not because they had too many Preferred members.

I know as soon as this merger was consummated, I'd be getting used to either DTW or IAD as my hub of choice - already, for me, NW and UA are better FF programs (allow segment qualification); I'm not going to bother with a Doug-led DL; and I know I'm not the only Medallion that will be doing so either.


User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 10, posted (7 years 2 months 3 weeks 17 hours ago) and read 2486 times:

DL’s whole restructuring and the US offer is pitting creditors who are interested in the long-term viability of the industry against those who just want their money now – and who could care less bout DL, US, or the rest of the industry as soon as they cash their checks.

DL and its bankruptcy advisers obviously know who among their creditors is willing to support them and who is willing to bail. Grinstein emphasized at its hearings in Washington on Wednesday that its biggest creditors are ALPA, its retirees, and the PBGC – all parties with whom it has signed agreements and parties whose recovery would certainly change for the negative if DL was acquired by US.

DL is offering the least amount of cash because it knows that the lowest debt levels will give it the best position from which to compete while Parker is wiling to load DL with 2.5X more debt than DL would otherwise have and have a network that is no bigger than what DL has now as a standalone carrier – plus US’ shrinking market share in PHL and its local market positions at its other hubs (which is a fraction of DL’s local market revenue in its hubs).

The creditors who are interested in DL and the industry’s long-term future – who are obviously the majority or a deal would have been forced down DL mgmt’s throat by now - will continue to accept a smaller short-term payment in return for a more stable, viable long-term future for DL and the industry.

See the similar thread regarding LAX but DL is on solid legal grounds with LAWA. UA’s issues with LAWA are still not resolved regarding its bankruptcy and leases – and DL will use the precedent of the UA case to guide it in how it proceeds with LAWA. The reason LAX and the other airports are objecting is because DL can leave BK with those leases resolved or the outstanding legal issues will be carried on outside of BK with DL having the right to reject the leases once the legal issues are resolved. Airports don’t want outstanding legal issues but LAWA also doesn’t want a legal answer delivered which will undoubted show that what LAWA has done against DL was illegal – and a spiteful attempt at trying to keep from repeating what they have been through with UA.


User currently offlineIkramerica From United States of America, joined May 2005, 21415 posts, RR: 60
Reply 11, posted (7 years 2 months 3 weeks 16 hours ago) and read 2456 times:

Quoting WorldTraveler (Reply 10):
DL’s whole restructuring and the US offer is pitting creditors who are interested in the long-term viability of the industry against those who just want their money now – and who could care less bout DL, US, or the rest of the industry as soon as they cash their checks.

That's a good assessment, to a point. But I don't think it's as cut and dry, as there are actually more like 5 types of creditors:

Care about future, think DL is best alone
Care about future, think DL is best with US
Care about future, think DL is best with anyone but US
Want money now, think US offer is best to get money
Want money now, don't think US offer is best way to get it



Of all the things to worry about... the Wookie has no pants.
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