Enilria From Canada, joined Feb 2008, 2206 posts, RR: 6 Posted (10 months 2 weeks 6 days 4 hours ago) and read 1278 times:
I thought there was a 1 year limit now on plan exclusivity in Chapter 11. Anybody know the law? This was filed in the docket today...
By this motion (the “Motion”), the Debtors seek an order in the form attached hereto as Exhibit A, pursuant to section 1121(d) of the Bankruptcy Code, further extending the Debtors’ exclusive periods within which to file and solicit acceptances of a plan of reorganization (the “Debtors’ Exclusive Periods”) by 120 days, from February 4, 2009 and April 6, 2009, respectively, to June 4, 2009 and August 4, 2009, respectively. The Debtors seek these extensions to avoid the necessity of having to formulate a plan of reorganization prematurely and to ensure that their ultimate plan of reorganization best addresses the interests of the Debtors, their employees, creditors and estates.
There had been growing optimism that F9 might exit this spring, but Frontier is asking for a delay due to difficulties formulating their new business plan.
9. Although the Debtors’ developing business plan is a work in progress and
will continue to evolve, the Debtors have been engaged with the Statutory Committee of
Unsecured Creditors (the “Creditors’ Committee”) on their progress, and they have
made multiple formal and informal presentations about the Debtors’ restructuring and
operational plans to the Creditors’ Committee and its advisors. The Creditors’
Committee and its advisors have been given access to the Debtors’ financial advisors and
officers, and to substantial information, in order to help the Creditors’ Committee
evaluate the Debtors’ businesses and plans.
10. The Debtors’ goal is, of course, to develop and propose a plan of
reorganization that will receive support from their various constituencies. Additional
work and progress is necessary on various fronts in connection with the eventual
development of such a plan of reorganization.
Sunking737 From United States, joined Feb 2005, 1152 posts, RR: 8 Reply 1, posted (10 months 2 weeks 6 days 3 hours ago) and read 1269 times:
I think that maybe they are going to sell themselves. I could be wrong. I don't want to start any kind of fight. Seems if they are asking for that much time sometime maybe in the works.
Maybe they are going to dump the buses and go all DHC-8-400 ala local?
Ytib From United States, joined Nov 2004, 404 posts, RR: 1 Reply 2, posted (10 months 2 weeks 6 days 3 hours ago) and read 1252 times:
Quoting Sunking737 (Reply 1): I think that maybe they are going to sell themselves. I could be wrong. I don't want to start any kind of fight. Seems if they are asking for that much time sometime maybe in the works.
Why? United was only in bankruptcy for three years.
Enilria From Canada, joined Feb 2008, 2206 posts, RR: 6 Reply 3, posted (10 months 2 weeks 6 days 3 hours ago) and read 1245 times:
Quoting Sunking737 (Reply 1): I think that maybe they are going to sell themselves. I could be wrong. I don't want to start any kind of fight. Seems if they are asking for that much time sometime maybe in the works.
Maybe. It's probably smart to take as much time as they can get, regardless of what their plans are.
Quoting Sunking737 (Reply 1): Maybe they are going to dump the buses and go all DHC-8-400 ala local?
I can imagine splitting Lynx from F9, but after a great November I don't think they would "dump the buses" unless you mean sell/merge mainline and retain Lynx.
Quoting Ytib (Reply 3): Why? United was only in bankruptcy for three years.
The law has changed since then in such a way that is supposed to accelerate Ch11, but I'm not clear on if that really works!
Hiflyer From United States, joined Nov 2004, 1620 posts, RR: 6 Reply 4, posted (10 months 2 weeks 6 days 3 hours ago) and read 1200 times:
Didn't FLYI also try to extend?...I seem to remember that for FLYI they could not find a buyer and wanted the exclusivity period extended to continue to shop it out. Of course...we know now that it did not work.
Atrude777 From United States, joined Aug 2003, 4168 posts, RR: 56 Reply 5, posted (10 months 2 weeks 6 days 3 hours ago) and read 1173 times:
If I recall from the date of filing, the airline has 18 exact months to formulate an exit plan to actually leave BK. If a plan is not filed to the judge by the end of the 18th month, it goes to immediate liquidation and assets. I am not specifically clear how fast that happens IF that is the correct way.
Once a plan has been filed the judge then determines an exit date for the airline. So technically, F9 has every right to ask for an extension because it is underneath the 18th month.
If I am totally wrong, please don't yell at me, but I think this is what I heard...
Alex
Good things come to those who wait, better things come to those who go AFTER it!
Enilria From Canada, joined Feb 2008, 2206 posts, RR: 6 Reply 6, posted (10 months 2 weeks 6 days 2 hours ago) and read 1093 times:
Quoting Atrude777 (Reply 6): If I am totally wrong, please don't yell at me, but I think this is what I heard...
You know I have looked and looked and all I've ever found are articles saying DL and NW filed for Ch11 on the day they did because the law was about to change to restrict them to "one year to reorganize". Either that was a gross oversimplification or simply false.
United1 From United States, joined Oct 2003, 3112 posts, RR: 4 Reply 7, posted (10 months 2 weeks 6 days 2 hours ago) and read 1053 times:
It looks like they have 18 months from the date of filing to reorganize themselves. However IIRC they don't liquidate on 18 months plus 1 day at that point the door is just open for competing restructuring plans to be put forward by outside parties.
Enilria From Canada, joined Feb 2008, 2206 posts, RR: 6 Reply 8, posted (10 months 2 weeks 6 days 2 hours ago) and read 1007 times:
Quoting United1 (Reply 8): It looks like they have 18 months from the date of filing to reorganize themselves. However IIRC they don't liquidate on 18 months plus 1 day at that point the door is just open for competing restructuring plans to be put forward by outside parties.
It's not surprising you had to find that in a UK paper. Where are all the articles on this from our media? They must have been too busy covering Britney Spears.
Jonesday: "Congress made important changes to section 1121 as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. As amended, the statute provides that the 120-day period during which the DIP has the exclusive right to file a chapter 11 plan %u201Cmay not be extended beyond a date that is 18 months%u201D after the bankruptcy petition date. In addition, the 180-day period during which only the DIP may solicit votes for a plan may not be extended beyond 20 months after the filing date. The amendment was prompted by a widespread perception that some debtors were languishing in chapter 11 for inordinate periods of time, and that a more abbreviated time-frame for exclusivity will encourage debtors and other stakeholders to come to the table sooner for the purpose of negotiating a viable exit strategy, which will ultimately reduce administrative costs."
18 months.
Quoting United1 (Reply 8): However IIRC they don't liquidate on 18 months plus 1 day at that point the door is just open for competing restructuring plans to be put forward by outside parties.
Pgtravel From United States, joined Oct 2005, 368 posts, RR: 0 Reply 11, posted (10 months 2 weeks 5 days 22 hours ago) and read 787 times:
My guess is that this isn't really a sign of anything in the works (like a merger). They just want to make sure they have as much time as possible. It's still well within the 18 month limit, and the amount of absurd legal work involved is pretty daunting. I think it's just part of the game these days.
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