Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
AMR Bankruptcy Court Thread - Part 4  
User currently offlinecommavia From United States of America, joined Apr 2005, 11405 posts, RR: 62
Posted (1 year 9 months 5 days 12 hours ago) and read 27360 times:

A report out today from the WSJ details ongoing machinations in negotiations with the various creditors, stakeholders and constituencies surrounding AMR's emergence from bankruptcy. Lots going on behind the scenes - as one would expect.

The article refers to a letter sent to Horton by the heads of two hedge funds, both with large holdings of AMR debt. One, Appaloosa, is also a large holder of USAirways debt - although that holding is smaller than in AMR, and they are seen right now as open to either a merger or non-merger scenario if convinced one way or another. The article is not entirely clear on how or why AMR is not engaging sufficiently to the satisfaction of these two debtholders, as it hints that these two particular debtholders may have been less active in discussions of their own choice. Nonetheless, these two creditors seem to have their own ideas as to why.

The primary complaint of these two hedge funds is - apparently - that they believe AMR management is negotiating with a particular subset of creditors, particularly an ad hoc bondholders committee, to the apparent (whether intentional or unintentional) exclusion of others. They believe it is because the ad hoc bondholders committee appears more favorable to AMR's standalone plan. The letter reportedly alludes to a common refrain that nobody would find surprising - that AMR management is only begrudgingly dealing with Parker and still wants to steer AMR towards an independent emergence from Chapter 11. This will no doubt add fuel to that fire.

Perhaps most tellingly, if this article is to be believed - Horton has managed to convince - at least up until now - a subset of bondholders that have "offered to provide between $1 billion and $2 billion to finance American's exit from bankruptcy as an independent airline."

Hmmm ...

139 replies: All unread, showing first 25:
 
User currently offlineRevelation From United States of America, joined Feb 2005, 12322 posts, RR: 25
Reply 1, posted (1 year 9 months 5 days 12 hours ago) and read 27344 times:

Some coverage of the above is at

http://www.bloomberg.com/news/2012-1...nds-over-talks-with-creditors.html

It'll be interesting to see if the Appaloosa/Marathon group can prove these things in a court and sue for damages.

Seems by going public they'd rather see AA's behavior change sooner rather than later.



Inspiration, move me brightly!
User currently offlinecommavia From United States of America, joined Apr 2005, 11405 posts, RR: 62
Reply 2, posted (1 year 9 months 5 days 11 hours ago) and read 27262 times:

Quoting Revelation (Reply 1):
It'll be interesting to see if the Appaloosa/Marathon group can prove these things in a court and sue for damages.

Seems by going public they'd rather see AA's behavior change sooner rather than later.

Yep, or if these two particular creditors are simply using this as leverage to try and get a better deal - which is also possible. Should be interesting to see how this develops, and to see - over the coming weeks and months - if and/or how AMR management is able to win over any additional creditors or stakeholders towards a standalone plan, and/or if AMR ends up pursuing (voluntarily or involuntarily) a merger.


User currently offlineLDVAviation From United States of America, joined Dec 2008, 1036 posts, RR: 5
Reply 3, posted (1 year 9 months 5 days 11 hours ago) and read 27205 times:

Quoting commavia (Reply 2):
Yep, or if these two particular creditors are simply using this as leverage to try and get a better deal - which is also possible. Should be interesting to see how this develops, and to see - over the coming weeks and months - if and/or how AMR management is able to win over any additional creditors or stakeholders towards a standalone plan, and/or if AMR ends up pursuing (voluntarily or involuntarily) a merger.

If the adhoc group of creditors holds the majority of AMR debt and is also in negotiations to provide $1 to 2 B of exit financing, I don't see what the problem is.

Too bad for the creditors who are left out. But Tom has a plan and he doesn't want anyone who is not onboard to muck things up.


User currently offlinecommavia From United States of America, joined Apr 2005, 11405 posts, RR: 62
Reply 4, posted (1 year 9 months 5 days 10 hours ago) and read 27141 times:

Quoting LDVAviation (Reply 3):
If the adhoc group of creditors holds the majority of AMR debt

Based on what I've read it does not sound like this ad hoc group holds anywhere close to a majority of AMR debt. They collectively do hold a lot of it, but not the majority by any stretch.

Interestingly, the article says that AMR invited Appaloosa to join this ad hoc group, and Marathon (the other hedge fund mentioned) actually did join the group earlier in the year, only to leave the group later.


User currently offlineProst From United States of America, joined Oct 2012, 908 posts, RR: 1
Reply 5, posted (1 year 9 months 5 days 10 hours ago) and read 27096 times:

Quoting LDVAviation (Reply 3):
If the adhoc group of creditors holds the majority of AMR debt and is also in negotiations to provide $1 to 2 B of exit financing, I don't see what the problem is.

I have two questions: First is if AMR has $5.1 Billion cash on hand, why do they need an additional 1-2 Billion? Is this linked to their fleet renewal?

The second question I have is what is the role of CEO during bankruptcy? I understand that the CEO is the steward of a companies' shareholders, but once bankruptcy is filed, that most likely wipes out any value they share holder has in the company. So does the CEO now report to the bond holders?


User currently offlinepar13del From Bahamas, joined Dec 2005, 7042 posts, RR: 8
Reply 6, posted (1 year 9 months 5 days 9 hours ago) and read 27023 times:

Quoting Prost (Reply 5):
So does the CEO now report to the bond holders?

Or, who is pulling his strings or is he an independent contractor looking out for himself..........
Hhmmmmm, interesting question.


User currently offlinemoman From United States of America, joined Aug 2004, 1054 posts, RR: 4
Reply 7, posted (1 year 9 months 5 days 9 hours ago) and read 27004 times:

Quoting Prost (Reply 5):

I have two questions: First is if AMR has $5.1 Billion cash on hand, why do they need an additional 1-2 Billion? Is this linked to their fleet renewal?

The second question I have is what is the role of CEO during bankruptcy? I understand that the CEO is the steward of a companies' shareholders, but once bankruptcy is filed, that most likely wipes out any value they share holder has in the company. So does the CEO now report to the bond holders?

First, the exit financing may be related to their operational expenses and restructuring. I'm not sure if they "need it" per se, but the bond holders/equity holders all must agree to the plan for the judge to approve the reorganization (i.e. emergence from bankruptcy.)

The CEO reports to all stakeholders - employees, debt holders, and common/preferred shareholders. Its likely true the common stock will be wiped out, as it's an unsecured obligation. But the CEO is still responsible for setting general strategic direction of the company.

As per the US Airways discussion above, it's very interesting to see how it all plays out. Very shrewd of American, in my opinion, to put a "keep quiet" clause in the non-disclosure document. Of course, the last US Airways employee I spoke with, a person who wouldn't have inside knowledge of such things, told me the deal was "all but signed".



AA Platinum Member - American Airlines Forever
User currently offlineckfred From United States of America, joined Apr 2001, 5164 posts, RR: 1
Reply 8, posted (1 year 9 months 4 days 13 hours ago) and read 26673 times:

Quoting moman (Reply 7):
Of course, the last US Airways employee I spoke with, a person who wouldn't have inside knowledge of such things, told me the deal was "all but signed".

Just as AA employees I know, who also wouldn't know anything about a possible deal with US, have said everything from the deal is done to the deal will never happen. So, who knows!


User currently offlineBarryH From United States of America, joined Sep 2012, 71 posts, RR: 0
Reply 9, posted (1 year 9 months 4 days 7 hours ago) and read 26546 times:

One of the reasons Parker is so hot for AMR while it's in bankruptcy is he'd be able to get it at a depressed value. That and the potential ability to dispose of additional and duplicate assets based on the needs of a combined US/AA post-bankruptcy. Horton, the judge, and various committees aren't idiots and know a streamlined AA post-bankruptcy would be able to command more in any combination. And that benefits all the stakeholders many of whom will likely receive equity in lieu of debt. Except maybe the union staff that could care less about anything other than seeing the current AA management team go. AA's stand-alone plan presentation will take the in- and post-bankruptcy valuation in to consideration when comparing it to an in-bankruptcy vs. post-bankruptcy combination.

Parker made the same arguments about a combination with DL when they were in bankruptcy and was rebuked because combining with another carrier while in a depressed financial state made no more sense then than it does now. There very well could and you could even argue should be a AA/US combination. Now's a great time for it to happen from a US vantage point. Not so much from an AA vantage point. And that's based on the difference between in- and post-bankruptcy valuations; not emotional leanings one way or the other. AA's financial performance metrics have been steadily rising even in the face of their operational challenges. Assuming a deal's reached with the pilots things will only continue to improve. Great for AA from a valuation standpoint. Not so much for Parker to whom the cost of AA post-bankruptcy could be 30% higher. And a re-borne AA would most likely be the stronger of the two entities and the acquirer vs. the acquiree. On a pure operational asset basis AA is the stronger of the two entities with transatlantic (including prime LHR slot ownership) and transpacific JVs and leadership in the burgeoning Latin America market. This isn't a checkers game, it's chess.


User currently offlineLAXintl From United States of America, joined May 2000, 24785 posts, RR: 46
Reply 10, posted (1 year 8 months 3 weeks 4 days 16 hours ago) and read 26055 times:

Planned in court this week. I do however strongly suspect the weather might force delays and reschedule.


o Extension for negotiations covering negotiations for 3 767s - N319, 320, 327
o Objection to 81 pending creditor trade claims
o Amend and supersed 193 pending creditor trade claims
o Reject 18 pending creditor trade claims
o Tentatively authorize modified lease term sheet covering 21 EJ135, 59 ERJ140 and 118 ERJ145 aircraft and allow $650mil security trustee claim against AMR. Also authorize 60-day extension to finalize agreement.
o Motion to extend exclusivity periods to March 28, 2013
o Authorize assumption of facility leases at ABQ and SAT
o Extension to negotiate facility leases at LAX, ONT, JFK, ORD, BDL, BNA, RNO, and ELP
o Authorize employment of Collateral Verifications, LLC as aircraft valuation consultant
o Hearing to extend automatic stay in adversary proceedings against AMR

=



From the desert to the sea, to all of Southern California
User currently offlineDLD9S From United States of America, joined Jun 2006, 260 posts, RR: 0
Reply 11, posted (1 year 8 months 3 weeks 2 days 11 hours ago) and read 25635 times:

Does anyone know if the meeting between AA and US happened yesterday? I am assuming not since it was supposed to be held at the NY offices of Weil, Gotshal & Manges, but maybe it had a change of locale?

Also what impact - if any - does the end of the NDA have on this meeting if it has been pushed till later.



717 727 737 747 757 767 777 DC9 DC10 M80 M90 M11 L10 AB6 333 340 319 320 321 ARJ CRJ EM2 EMJ SF3 146 100 BE1...
User currently offlineLAXintl From United States of America, joined May 2000, 24785 posts, RR: 46
Reply 12, posted (1 year 8 months 2 weeks 4 days 10 hours ago) and read 25305 times:

As expected all court events from last week were postponed, and now rescheduled for November 8th, at a new venue - Federal Court House up in White Plains.


From the desert to the sea, to all of Southern California
User currently offlineLAXintl From United States of America, joined May 2000, 24785 posts, RR: 46
Reply 13, posted (1 year 8 months 2 weeks 15 hours ago) and read 25309 times:

IRS and US Treasury Dept approve AMRs plan to freeze its pilot pensions.

The departments will allow an exemption that permits AMR to avoid offering lump-sum payouts as retirement benefit option, and instead simply offer monthly pension payments on accrued benefits in the frozen plan.

AMR had argued that the lump-sum payments would be a bank breaker, but it needed governmental approval for the exemption as pilots hired prior to 1983 still held such rights under regulations.


Story:
American Airlines gets OK to freeze (not terminate) pilot pensions
http://aviationblog.dallasnews.com/2...not-terminate-pilot-pensions.html/

=



From the desert to the sea, to all of Southern California
User currently offlineLAXintl From United States of America, joined May 2000, 24785 posts, RR: 46
Reply 14, posted (1 year 8 months 1 week 2 days ago) and read 25309 times:

Both US Airways and AMR have briefed the creditors committee this week.

US Airways presented its case on Tuesday, while AMR CEO presented his views on Wednesday.

Reportedly any deal would provide the creditors a large share of the merged company.


Stories
http://aviationblog.dallasnews.com/2...th-american-airlines-is-good.html/
and
http://www.dallasnews.com/business/a...s-on-stock-in-potential-merger.ece

=



From the desert to the sea, to all of Southern California
User currently offlineByrdluvs747 From United States of America, joined Jul 2004, 2343 posts, RR: 1
Reply 15, posted (1 year 8 months 1 week 1 day 23 hours ago) and read 25302 times:

Quoting LAXintl (Reply 14):

Reportedly any deal would provide the creditors a large share of the merged company.

I would assume that the AMR creditors would be the majority stakeholders in any new airline. If thats the case, how can it be guaranteed that Doug would remain as the CEO?



The 747: The hands who designed it were guided by god.
User currently offlinecommavia From United States of America, joined Apr 2005, 11405 posts, RR: 62
Reply 16, posted (1 year 8 months 1 week 1 day 17 hours ago) and read 25304 times:

Quoting LAXintl (Reply 14):
Both US Airways and AMR have briefed the creditors committee this week.

US Airways presented its case on Tuesday, while AMR CEO presented his views on Wednesday.

Reportedly any deal would provide the creditors a large share of the merged company.


Stories
http://aviationblog.dallasnews.com/2...th-american-airlines-is-good.html/
and
http://www.dallasnews.com/business/a...s-on-stock-in-potential-merger.ece

Based on the reporting in WSJ, it sounds as though the two sides are proceeding down two separate, parallel paths while at the same time negotiating the broad outlines, and eventually the details, of a merger. The big difference, not surprisingly, is over whose side's creditors/shareholders get what portion of the merged company, although it appears Parker has now essentially given in to the AMR side's demands for at least 70% of the combined company. Let's hope that if a merger does happen, it creates a viable, successful airline capable of delivering value and benefits to all of the combined company's stakeholders - including creditors, employees, and - critically - customers.


User currently offlineckfred From United States of America, joined Apr 2001, 5164 posts, RR: 1
Reply 17, posted (1 year 8 months 1 week 1 day 14 hours ago) and read 25305 times:

If I had a large state in US Airways (individual shareholder, hedge fund manager, pension plan administrator, etc.), I would hate to see my stake significantly reduced in voting power, just to get a deal done with AMR/AA.

Would the shareholders of US have to approve a merger? If so, assuming that the creditors of AMR get the lion's share of the new stock, what are the chances that they would vote down a merger.

And frankly, if I am a part of the leadership of a US union, I'm not sure that I'm comfortable with a merger. Any combined collective bargaining group is going to be dominated by AA employees, both in terms of numbers of rank and file, as well as leadership.

The former TWA F/As will tell you have the APFA ran roughshod over them.

Granted, Congress changed the laws on how seniority lists are combined. Still, it becomes difficult for a US pilot, F/A, or mechanic to become a national officer of the union, with that many AA employees.


User currently offlineavek00 From United States of America, joined Oct 2004, 4336 posts, RR: 19
Reply 18, posted (1 year 8 months 1 week 1 day 14 hours ago) and read 25304 times:

Horton is smartly trying to kill the deal by insisting on a massive share of the combined equity for American's creditors. It is going to be difficult for Parker to meet or counter the high bar Horton is setting.


Live life to the fullest.
User currently offlinecommavia From United States of America, joined Apr 2005, 11405 posts, RR: 62
Reply 19, posted (1 year 8 months 1 week 1 day 10 hours ago) and read 25301 times:

Quoting avek00 (Reply 18):
It is going to be difficult for Parker to meet or counter the high bar Horton is setting.

I'm not so sure. Parker has reportedly already come off his initial position of a 50/50 split to come up to the AMR position of 70/30. I think he is willing to throw basically anybody under the bus (including USAirways stockholders and employees) to get his deal done.

In other news, AA confirmed today that its solicitation for new flight attendant applicants was over 10x oversubscribed - 20,000+ applicants for 1,500 positions. With that large a disparity, is it any wonder that AA (and other airlines) get away with paying flight attendants and certain other airline employees what they do?


User currently offlinepar13del From Bahamas, joined Dec 2005, 7042 posts, RR: 8
Reply 20, posted (1 year 8 months 1 week 1 day 10 hours ago) and read 25302 times:

Quoting commavia (Reply 19):
is it any wonder that AA (and other airlines) get away with paying flight attendants and certain other airline employees what they do?

Well, there are a large number of pilots out on furlough and or out of jobs yet the airlines all have to go to the pilots to get things done.
I think it is about the power that the job holds, not the number of persons on the outside looking in, flights cannot operate without F/A's, but the F/A unions do not appear to be as consolidated as the pilots, then again, the mechanics at NW were and look where it got them, so I still think it is about the power of the job.


User currently offlineckfred From United States of America, joined Apr 2001, 5164 posts, RR: 1
Reply 21, posted (1 year 8 months 1 week 1 day ago) and read 25299 times:

First of all, we're in a bad economy. Any time an employer announces openings for 1500 people, far more than that number will apply.

Second, there is still a certain romanticism about jobs in the airline indusry, especially flight crews. The idea of being in New York today, San Francisco tomorrow, and Miami the day after still is attrractive, even if this is 2012 with a poor excuse for a coach product, as opposed to 1962, when jet travel was new, and coach customers were pampered.


User currently offlineLAXintl From United States of America, joined May 2000, 24785 posts, RR: 46
Reply 22, posted (1 year 7 months 3 weeks 6 days 15 hours ago) and read 25273 times:

Due to multiple delays and reschedules result of Hurricane Sandy, the BK court is back to work this week with an extremely busy agenda.

o Approval of assumption of payment and processing agreements related to credit card and merchant services
o Authorize issuance of subpoenas for testimony for PBGC
o Authorize Payment of fees for professional services and expenses rendered by special counsel and professional advisors
o Reimbursement of fees incurred by members of unsecured creditors committee
o Approval of settlement agreement covering 1 MD-80 aircraft: N59523
o Approval of settlement agreement covering 6 B757 aircraft: N614, 626, 627, 629, 632, 648
o Objection to 181 creditor claims against AMR found to be duplicates
o Amend and supersede creditor 193 claims against AMR
o Tentatively reject 18 claims against AMR with insufficient documentation
o Objection to waive 68 insured claims against AMR
o Objection to 14 deductible insured claims against AMR
o Objection to 16 claims for equity interest against AMR
o Approve 22 no liability claims against AMR
o Authority to retain and employ ICF SH&E, Inc. as consultants
o Authority to retain and employ Skyworks Capital, LLC as advisors
o Authority to retain and employ McKinsey
o Objection of claims related to special interest bonds at AFW
o Objection of claims related to airport revenue bonds at TUL
o Objection of claim related to airport revenue bonds at DFW
o Objection of claim related to airport subleases bonds at LAX
o Objections against various claims, indentures and notes.
o Authorize and approving amendments to bank processing agreements and reaffirmation of guaranty
o Approve settlement agreement with Sabre Inc.
o Authorize assumption of various facility leases and payment of cure amounts at BDL, LAX, and RNO
o Extension of time to negotiate facility leases at JFK, BWI, BNA, STL, ONT, LAX and SJU
o Approval of sale-leaseback agreement with Wilmington Trust Company company covering single 737: N992AN
o Motion for summary judgment in proceeding ALPA vs American Eagle Airlines

=



From the desert to the sea, to all of Southern California
User currently offlinepar13del From Bahamas, joined Dec 2005, 7042 posts, RR: 8
Reply 23, posted (1 year 7 months 3 weeks 6 days 15 hours ago) and read 25242 times:

Quoting ckfred (Reply 17):
Granted, Congress changed the laws on how seniority lists are combined.

Which does not appear to have assisted the US East West North South groups get their act together, add in AA groups and we have airline armageddon, however, hope does spring eternal, the US group will put aside their differences to merge with AA and the AA groups will put aside their differences to get rid of AA management.
Cool


User currently offlinemiaami From United States of America, joined Jul 2007, 562 posts, RR: 0
Reply 24, posted (1 year 7 months 3 weeks 4 days 6 hours ago) and read 24774 times:

Interesting developement, could this sway the Pilots vote on their T/A?

http://www.bloomberg.com/news/2012-1...and-alone-american.html?cmpid=yhoo

[Edited 2012-11-28 17:22:01]

25 Post contains images LAXintl : Today is the 1-year anniversary since AMR filed Ch-11.
26 silentbob : That merger/integration started before the law was passed. Any new integration would be required to follow the steps laid down in the new law.
27 ckfred : Why not get rid of AMR management without merging with US? Doug Parker got his start at AA, and AA's culture is not noted for turning out great corpo
28 LAXintl : Horton and gang need to see that regardless of how things play out they will be shown the door. Now with the bondholders clearly stating one of their
29 ckfred : Just remember that a lot of UA employees were mad at Glen Tilton and wanted him out, espeically since UA spent so much time in bankruptcy. Yet, Tilto
30 Post contains links LAXintl : AMR seeks to extend its exclusivity period until March 11, 2013 now. Currently this ends in January. AMR wants keep control over bankruptcy http://fin
31 LDVAviation : Those bondholders do not hold a majority of the debt, about $900 million in total. There are factions everywhere trying to influence the outcome. As
32 LAXintl : AE reached a TA with its dispatchers. AMR has now reached a deal with all its AE work groups.
33 ckfred : What time is the APA expected to announce the results of voting on the last T/A?
34 ckfred : Just after I hit post, I saw the new thread about the pilots approving the T/A. So, where does AA go from here. And, how soon before AA starts the pro
35 LAXintl : A few court items for this week. o Reimbursement of expenses incurred by members of unsecured creditors committee o Objection of 18 creditor claims du
36 Post contains links commavia : As has been previously reported, AMR CEO Tom Horton met last week with the Board of the AA pilot union to present his "vision" for the company's futur
37 BarryH : Since emotion is what's driving pilot sentiment I don't see anything that Horton or anyone tied to AA as it stands today could present that would cha
38 LDVAviation : Didn't the DFW Airport Board already give away some of the details in its description of the improvements to the terminal lobbies?
39 justplanenutz : It also shows that the remaining 5 772 orders in 2014-2016 will be taken as 77Ws. No big surprise, but I don't believe AA has said this before.[Edite
40 LAXintl : One last round of hearings this week before court holiday break. o Objection to AMR motion for settlement with APA for supplement B pilot beneficiarie
41 Post contains links wolfpacker : Court has approved pilot agreement http://finance.yahoo.com/news/court-...ican-airlines-labor-175502747.html
42 LAXintl : With holidays over the court returns to business. Items scheduled for upcoming hearing. o Lift of stay on pending Department of Labor litigation again
43 Post contains links and images mffoda : There is an update on the AA / Airbus order on the Dallas news website.... Kinda funny http://aviationblog.dallasnews.com/2...s-but-were-not-sure-how-
44 ckfred : What is this all about? Sounds to me as if USAPA has some qualms about the possible AA/US merger, and how the merger would affect US pilots in terms
45 Post contains links AADC10 : Effectively yes. The CEO has to report to the Bankruptcy judge and court, which represents the interests of the bond holders and to some extent labor
46 aaexecplat : The much bigger issue for US is the debt that is maturing in 2014 and the relatively low cash balance in hand...and the work groups pushing for indus
47 ckfred : NK is a miserable excuse for an airline. VX may have a great product, but it remains to be seen if they can become consistantly profitable. Any time
48 Post contains links LAXintl : A nice surprise to many, but AMR now says that shares of the company might not be worthless and actually hold some equity upon BK exist. If true, woul
49 teme82 : Have to say that after hearing the talk of AA pilot's and FA's in London. Yeah I had same hotel for my stay in there. I must say that the pilots are a
50 BDL757 : Can you or someone please elaborate on this? What kind of debt is it or what is the debt for? Does it have to all be repaid in 2014? Is that why the
51 klkla : It's not as tragic as some on here make it. Some of their debt is maturing. They will simply replace it and likely at lower interest rates than they
52 Post contains links and images LAXintl : AMR and creditors committee seek further extension to file their reorganization plan. Now they are asking for an April 1st deadline to file a plan, wi
53 silentbob : It seems more and more clear to me that AA management wants to extend their exclusivity as long as possible to prevent a merger, or at least maintain
54 LAXintl : Busy agenda for this week: o Extension for negotiation covering 86 RB211, JT8D and CF6 engines with lease and bond holders. o Approving assumption of
55 avek00 : That was clear -- and smart -- from the outset of the bankruptcy process.
56 NYC777 : I think the motion for the assumption of the purcahse contracts is to be today. Anyone know when we'll hear a decision about this?
57 LDVAviation : According to the DMN, the judge approved the motion.
58 Post contains links EricR : Interesting article from Bloomberg today indicating that key creditors are backing the merger. One of the selling points was "the promise of more cost
59 commavia : Yes, Doug Parker definitely has made a lot of big promises to a lot of people. Let's hope, if given the opportunity, he can keep them all. There sure
60 avek00 : They're not key creditors, just a group of bondholding banks that are trying to push for a merger. The creditors who matter at this stage sit on the
61 commavia : And now, as many of us may have expected, it appears - according to a WSJ report - that leadership negotiations are narrowing in on perhaps having Par
62 etops1 : Correct but I think Horton will act as Non Acting Chairman . Same as Tilton was with the UA/CO merger correct ?
63 Post contains links PanAmPaul : It still seems up in the air... (sorry, no pun intended). Everything I'm reading seems to say the split between AA creditors and US shareholders is i
64 commavia : There is no such thing as a "Non Acting Chairman." If there was, that would also be referred to as a fired Chairman. There are, however, Non-Executiv
65 etops1 : Excuse me . " Non executive Chairman" . I can see Parker agreeing to it . He did the same with Bruce Lakefield when AW/US merged . Lakefield was Chai
66 avek00 : Most nonexecutive Chairmen do very little at publicly traded companies, it's basically a sinecure.
67 lucky777 : And that seems to be the million dollar question. Doug Parker has let it be known that US Airways route structure, as currently constructed anyhow, s
68 BarryH : That, to me, would make the merger much more palatable. Parker's a cowboy based on his unorthodox business approach and has a LCC mentality based on
69 etops1 : Your so full of it . Parker and Horton share the same experience . They both started their careers together at AA . What the hell are you talking abo
70 EricR : Parker is a cowboy based on his unorthodox approach? What has he done that is unorthodox? He made the best use of the assets he had and ran a profita
71 BarryH : And based on his accomplishments and the airline industry in general tell me why that's a good thing? He saved HP and US buy slamming them together b
72 etops1 : He has more accomplishments than Horton has ever had.
73 Post contains links BarryH : Such as? And I don't count merging with AA when US is at the precipice of imploding if left as a stand-alone an accomplishment. Look at it this way.
74 EricR : Then why are you praising Horton for doing the same thing with AT&T? During the time Horton was CFO of the old legacy AT&T (based in N.J.) AT
75 BarryH : Exactly. And he had no involvement in getting them there; he was brought in to fix it. He did reduce their gross debt by 75% without which their woul
76 EricR : I completely agree that he had limited involvement in getting AT&T to where they were. However, in my opinion, conducting a fire sale on assets (
77 PanAmPaul : I agree that credit shoudl be given where credit is due and DP should receive credit for what he did. I'm not sure that should portray Horton in a ba
78 ckfred : Hindsight is 20/20, and a lot of AA employees who didn't care for Bob Crandall now realize how good he was. I tend to agree with a lot of people that
79 dirtyfrankd : Other than strengthening AA's presence on the east coast and in the southwest, I fail to see what else US brings to the table. Without a merger, would
80 B377 : Marathon Asset Management, who at one time said it held nearly $100,000,000 of AA's debt and was complaining in the press about their dissatisfaction
81 Post contains links EricR : I am not sure, but it is interesting to note that AA requested another 15 day extension to file their BK exit plan. This is the second time they've r
82 BarryH : $100MM in the greater scheme of things is chump change and certainly not enough to sway the bankruptcy outcome. That's about 1/3 of what a new 773 co
83 aajfksjubklyn : In today's day and age, we can work literally from anywhere. GRU, EZE, NRT. It really doesn't matter unless you work on the line and have to be prese
84 avek00 : Horton would not have skipped town if an agreement was going to be announced in the next couple days. That said, the nuts and bolts of negotiation ar
85 Post contains links vegas005 : http://www.wfaa.com/news/business/Am...-expected-next-week-190101971.html Sounds like a done deal?
86 LAXintl : Court items for this week: o Motion to lift stay in pending workplace discrimination case in North Carolina court o Fee application of Deloitte Financ
87 dirtyfrankd : Does this mean they are still trying to fight off a merger?
88 LAXintl : Not perse fend off a merger, but management wants continued exclusivity in being able to shape the business plans and oversee the bankruptcy prior to
89 dirtyfrankd : Thanks for the very helpful explanation. In this process, who really gets to make the decision on whether to merge with LCC or not? Does Debtor/Manag
90 commavia : AMR filed its 2012 10K (Annual Report) with the SEC today. Total 2012 loss (excluding restructuring-related items) of $316M, with total 2012 operating
91 PlaneAdmirer : That needs to come home or go some place stable.... Ugh.
92 LAXintl : The reason its there is because its hard or impossible to repatriate. Going back to Braniff days, getting money out of South America can often be a c
93 LAXintl : AA shared a bankruptcy timeline with unions following the US Air merger news. Here is what they are projecting. American will file a Plan of Reorganiz
94 LAXintl : Apparently March 27th hearing date has been set for POR presentation.
95 ckfred : It seems to me that the bankruptcy case has to remain active, until DOJ makes a decision on whether to disapprove the merger, or to approve it with co
96 LAXintl : Should be rather fast as AA-US said they expect to complete the deal in Q3. From what I can find in DOT filings here is what happened with previous me
97 TSS : I'm a bit confused. I had assumed that "Plan A" was for AA/AMR to exit bankruptcy without the involvement of US, and that "Plan B" was for AA to merg
98 ckfred : You're right that A was to exit bankruptcy as a stand alone carrier, and B was merge with US as the exit strategy. Last week's announcement swapped A
99 LAXintl : New court hearing items for this week. I also understand some items from of the week of the 11th including AE union attempts to block the Republic dea
100 Post contains links PanAmPaul : In related news, AA and US today announced the two people who will lead the integration efforts during BK, Bev Goulet, American’s chief restructurin
101 LAXintl : After a couple weeks, court back in session this week. Some new, along with carry over items. The union opposition to the Republic E175 leases should
102 Post contains links LAXintl : AMR filed to extend its exclusivity period further to file its POR (plan of reorganization) - now asking the court for May 29th deadline with parties
103 Post contains links LAXintl : U.S. Trustee filed an objection to the carriers merger plans by challenging planned severance and retention payments including deal that gives Tom Hor
104 Post contains links PanAmPaul : Although Congress has no jurisdiction in the matter, the Senate held hearings today and Parker and Horton gave testimony. American, US Air CEOs Testif
105 LAXintl : Small, yet important number of items on the court calender this week. o Establishing notification procedures for substantial claim holders and equity
106 Post contains links flyinryan99 : Also looks like Embraer and Republic closed on the deal of 175s. Does anyone know when the deliveries will begin and when they will enter service? htt
107 LAXintl : Court items for this week. Mostly fleet and airport stuff. o Authorize assumption of certain unexpired leases at JFK o Sale Leaseback Rransactions wit
108 Post contains links LAXintl : Court held a separate hearing on objections of U.S. Trustee’s office about the proposed $20 million severance payment for Tom Horton, chairman and C
109 LAXintl : AMR today filed its intended schedule for its Plan of Reorganization (POR). The confirmation hearing is tentatively scheduled to be heard in court on
110 LAXintl : Items for this week: o Various applications for compensation for professional services rendered and reimbursement o Approving settlement agreement amo
111 par13del : Does this mean they are in Chpt.11 thru Aug-2013? I have not kept up with the latest filings and rulings, planning a trip to Central America in July,
112 LAXintl : That is correct. AMR will remain in BK until the creditors vote and approve the proposed plan of reorganization, and the court signs off on it after t
113 BDL757 : Wow, another extension! How long has AA's bankruptcy been compared to all the others?
114 LAXintl : Items for this week. Interesting they are still working on clearing up aircraft leases after such a long time...... o Approving assumption of certain
115 LAXintl : A couple fleet related items this week in court o Extension covering negotiations for 5 MD-80s - N513AA, N7514A, N7540A, N7541A and N7542A o Approval
116 ckfred : I seem to recall that UA was in bankruptcy for over 3 years, with a lot of extensions. It seems to me that UA's management just plain couldn't figure
117 Post contains links LAXintl : Busier agenda this week. o Multiple applications for compensation for professional services rendered and for reimbursement of actual expneses o Motion
118 LAXintl : A few items this week. o Establishing notice and objection procedures for confirmation of the Plan of Reorganization o Approving the forms of ballots
119 Post contains links commavia : I'm very happy to read the news today that AA seems to have selected Citi as its cobranded AAdvantage credit card partner going forward (vs Barclaycar
120 LAXintl : Items for this week; o Agreement to amend term sheet covering single MD-80 aircraft - N7517A o Authorizing Issuance of subpoenas for testimony by the
121 LAXintl : Items for this week. Amazing they are still haggling over aircraft after all this time. o Extension covering negotiations for 2 MD-80s. - N9627, N975T
122 oc2dc : Hmmm, I remember AA had to get rid of a 20 million dollar home in London, I wonder how much this one is worth... I also wonder how many more properti
123 LAXintl : $577,540 Likely corporate housing for execs. Often much cheaper then hotels.
124 LAXintl : A few short items this week. o Extension covering negotiations for 3 MD-80s. - N3507A, N7506, N7509 o Authority to employ and retain Shook, Hardy &
125 LAXintl : Court items for the week ahead; o Disallow 774 pending claims o Object to various claims related to section 1110 aircraft stipulations o Hearing on de
126 Post contains links commavia : AMR announced today that it has succeeded in issuing $1.41B in new debt, secured by 75 aircraft, to refinance existing debt. The great news for AMR is
127 Post contains links LAXintl : Tentative results are out for stockholder and creditor voting on the plan of reorganization. With 88% eligible ballots cast, over 97% voted in favor o
128 Revelation : Which means a lot of folks who said it'd never happen need to get ready for their dose of crow pie...
129 uberflieger : guys, what's the impact of the DOJ decision on the actual bankruptcy proceedings?
130 Post contains links LAXintl : AMR says it will proceed as planned and ask the BK judge to certify the creditor votes and approve the plan of reorganization that involved the US Air
131 Post contains links and images uberflieger : Judge Lane has doubts about AMR's bankruptcy plan http://finance.yahoo.com/news/judge-...ubts-amr-bankruptcy-145011048.html
132 Prost : Damned crows got out of the cage...
133 ECAMActions : Considering how weak the DOJ case against this merger is I expect most people on here to be eating multiple crow pies. I doubt this even makes it to
134 LAXintl : Well today's hearings are done. The judge closed the records for all matters related to the bankruptcy exit plan except for whether the DOJ case means
135 LAXintl : Items this week: o Potential Impact of DOJ Action on proposed confirmation o Motion of Dow Chemical Company for order modifying automatic stay allowin
136 Post contains links LAXintl : BK court judge says he is leaning towards approving the AMR plan of reorganization which covers the AA-US merger regardless of DOJ lawsuit. Basically
137 LAXintl : Court items for this week; o Application of Cooley LLP, special counsel for compensation and reimbursement o Application of Rothschild Inc. as financi
138 Post contains links LAXintl : And BK court today formally approved AMRs plan of reorganization which includes the US Airways merger. Implementation of the plan is pending the DOJ l
139 LAXintl : Court items this week -- o Extension to accept/reject leases on approx 90 RB211, JT8D and CF6 engines o Approve reimbursement of expenses Incurred by
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
AMR Bankruptcy Court Thread Part 3 posted Thu Aug 23 2012 11:14:22 by SA7700
AMR Bankruptcy Court Thread Part 2 posted Wed May 30 2012 18:30:30 by LipeGIG
AMR Bankruptcy Court Thread posted Mon Dec 5 2011 17:33:14 by LAXintl
Indian Aviation Thread: Part 101 posted Fri Oct 12 2012 10:35:59 by JOYA380B747
787 Production/Delivery Thread Part 10 posted Fri Oct 5 2012 06:44:48 by wilco737
New Zealand Aviation Thread Part 120 posted Tue Oct 2 2012 22:50:37 by ZKOJH
Central American Aviation Thread. Part 50 posted Tue Sep 25 2012 19:47:44 by SJOtoLIR
787 Production/Delivery Thread Part 9 posted Tue Sep 18 2012 23:56:30 by wilco737
Frontier/Republic Thread Part 38 posted Tue Sep 11 2012 16:00:36 by airliner371
New Zealand Aviation Thread Part 119 posted Fri Sep 7 2012 10:05:45 by PA515