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.
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.
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
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
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