article - SWA to buy DAL assets if merger occurs

[FlyBoeingJets]

...With the USAir bid, our worth went straight up in Wall St.'s eyes, and our own investors and exit financiers now see us with more value. Sad but true....


Bye Bye--General Lee

General,

Take a little time away from this board. All the loonies are out during this uncertain time at Delta. You won't be able to prove anything to anyone as anything is possible between now and Feb.

The only truth here is if USAir and Delta merge there will be some shrinkage to satisfy regulators. Why would SWA announce their interest?? Maybe to help get the deal going or get first dibs on the spoils. SWA management also thought USAir was going to go chapter 7 too.

Delta doesn't want the deal yet it still may happen. So what?

We just don't know what is in store for Delta...

 

[FlyBoeingJets]

Capt. sees me on the schedule.......uke:calls in sick. Replaced by younger, cool new reserve Capt. We fly the 4 day trip :laugh: all the way to the bank. We talk about current events, the war and flightinfo.com :uzi: Then its onto the 1-:beer: 2- :beer: 3-

then the 5th of the month and the 20th of the month . Life is good

Well said SWA/FO, keep up the good work.

 

[General Lee]

What I see if the two biggest creditors are DALPA and Boeing. One is primarily dependant on Delta for their income the other has other resources and revenue streams. Nothing in the SWA offer was disrespectful or not in a good business interest for SWA. Saying no to the sale drives the price up as we all know. Lets look at what bankruptcy does, it limits creditors return on the dollar they are owed. If a company wants to buy assets higher then what Delta wants to compensate its creditors for, that is better for the creditors. So if company pride says no, that is fine. If you were owed money, as you were in your pensions, would you be interested in selling assets to keep your pensions? I would probably say yes. Now that has unfortunately happened, and that is terrible. Shame on Delta. Shame on not protecting the value of the dollar to the creditors.

Thanks to the USAir offer, our value went up, way up. The value of the claim sale of our future stock (to unsecured creditors like ALPA) was initially 13 cents on the dollar. That rose as we announced some profitable months, and before the USAir offer we rose to 41 cents on the dollar (the amount creditors might get per dollar owed). That went up to 58 cents on the dollar after the announcement. Untied, when they came out, actually got about 24 cents on the dollar owed. It may still go down a bit, but the takeover offer bumped up our worth in the eyes of Wall St. So, if Dalpa is owed $2.1 billion for 6000 pilots, and you get over half per dollar owed, you do the math.

Bye Bye--General Lee

 

[General Lee]

General,

Take a little time away from this board. All the loonies are out during this uncertain time at Delta. You won't be able to prove anything to anyone as anything is possible between now and Feb.

The only truth here is if USAir and Delta merge there will be some shrinkage to satisfy regulators. Why would SWA announce their interest?? Maybe to help get the deal going or get first dibs on the spoils. SWA management also thought USAir was going to go chapter 7 too.

Delta doesn't want the deal yet it still may happen. So what?

We just don't know what is in store for Delta...

I am very well aware of the opinions on this board, and I know I can't convince everyone.

Southwest also stated during the start of our BK process that they would be happy to buy any assets if we liquidated. That is Southwest being Southwest. They are looking for opportunites. DL just stated there is nothing for sale, and our CFO is now looking to come out of BK sooner, to head off any other offers. Nobody will try to go after us after we are done with BK, since it would be more expensive. They are better off trying to do it when they can still change contracts, with employees and vendors. And, this was expected.


Bye Bye--General Lee

 

[northstar]

... not yet, not yet, not yet..... ok general, gear up.

just remember... on a -700, the opc goes a$$ to the glass

 

[spinproof]

You keep saying the biggest stake holders are Dalpa and Boeing. I'll agree that they have a say but I would think the "Bond" holders have more at stake here and more of a position! quote]

I believe the bond holders only account for 30% of all the claims. I'm not sure if they get a vote on any plan of reorganization.

Only 30%!!!!!! Well in that case you have nothing to worry about!

 

[General Lee]

... not yet, not yet, not yet..... ok general, gear up.

just remember... on a -700, the opc goes a$$ to the glass

Hmmmmmm. oooooooookay.


Bye Bye--General Lee

 

[GogglesPisano]

If you want to see whats going on behind the scenes rent"Barbarians at the gate" I'm sure its on video..its an old TV movie about RJR-Nabisco (merger, buyout).

The book is better. Gives a good account of what life is like in the castles of Wall Street. One advisor got $100,000 for showing up to some financier's office and giving his opinion of the merger. All for an hour's work.

 

[Noserider76]

Capt. sees me on the schedule.......uke:calls in sick. Replaced by younger, cool new reserve Capt. We fly the 4 day trip :laugh: all the way to the bank. We talk about current events, the war and flightinfo.com :uzi: Then its onto the 1-:beer: 2- :beer: 3-

then the 5th of the month and the 20th of the month . Life is good

I think its more like:

You: "Hey Capt wanna go down and get some wine coolers?"
Capt: "Ahhh-no thanks I gotta wash my hair and watch Desperate Housewives"
Capt then sneaks down the back elevator, hooks up with overweight F/A, and talks about how he almost got stuck hanging out with his FO.

 

[FDJ2]

Only 30%!!!!!! Well in that case you have nothing to worry about!

It's not whether or not I have anything to worry about, it's about being as accurate as we can be with the facts.