ABX and CHI?

[countbat]

What is the latest on ABX taking over CHI(Capital and ATI)? Any new developments?

 

[tired_pilot]

As of this morning all's quiet on the CHI front

 

[tazpilot]

Still awaiting DOT approval.

 

[ABXbooger]

Word is Cappy is sending a 727 to cover ILN-MIA-ILN. Welcome cornfield international airport...the white line is for tractor parking only.

 

[learjockey1]

ABX completes CHI deal

ABX Completes CHI Acquisition and Holding Company Formation
Monday December 31, 7:31 pm ET
WILMINGTON, Ohio--(BUSINESS WIRE)--ABX Holdings, Inc., successor to ABX Air, Inc., (NASDAQ:ABXA - News) announced today that it has completed its previously announced (November 2, 2007) holding company reorganization and plan to acquire Cargo Holdings International, Inc. (CHI), a privately held provider of outsourced air cargo services based in Orlando, Fla., for $332 million in cash and common shares of ABX Holdings, its newly formed parent company.Immediately prior to the closing of the acquisition of CHI, ABX Air created a new holding company structure, with ABX Air becoming a wholly owned subsidiary of ABX Holdings, Inc. As a result, shareholders of ABX Air became shareholders of ABX Holdings. As part of this transaction, CHI became a subsidiary of ABX Holdings.
The final equity purchase price of the transaction was $259 million, consisting of $233 million in cash and four million shares of ABX Holdings common stock. ABX Air also assumed or repaid $73 million in outstanding net debt of CHI. The transaction was funded primarily with cash obtained through a new $345 million senior secured credit facility, led by SunTrust Bank and Regions Bank.
ABX Air and CHI have a total fleet of more than 135 aircraft, including the largest fleet of 767 freighter aircraft in the world. The majority of these aircraft operate under contracts to provide airlift on behalf of DHL and BAX/Schenker in the U.S. and various other customers around the world.
Joe Hete, ABX Holdings and ABX Air President and CEO, said that the transaction will increase value for ABX Holdings’ shareholders because of the greater scale, breadth of service offerings, and market reach of the ABX Holdings’ companies.
“With the completion of this transaction, we will now focus on developing new ways to serve customers, particularly for our principal customers DHL and BAX/Schenker, by leveraging the collective capabilities of our family of businesses,” Hete said. “On behalf of the Board of Directors, I also want to thank all of those who helped us meet our year-end closing target, and to the employees of ABX Air and CHI for maintaining outstanding service to customers during this period.”
As previously indicated, CHI projects, on a pre-acquisition basis, including results from its non-airline businesses, revenues of approximately $300 million for the year ended December 31, 2007. Based on ABX Holdings’ current estimates and outlook, the CHI acquisition is expected to be accretive to ABX Holdings’ earnings in 2008.
ABX Air also said it is in discussions with DHL regarding ABX Air’s $92.3 million note payable to DHL. ABX Air has obtained a commitment from certain shareholders of CHI to provide subordinated financing for a portion of that amount if it becomes necessary to retire the note.
Stifel Nicolaus & Company acted as financial advisor to ABX Air in this transaction.
About ABX Holdings
ABX Holdings has two principal operating businesses: ABX Air (www.abxair.com), an air cargo services provider operating out of Wilmington, Ohio, and 14 hubs throughout the United States; and Cargo Holdings International, Inc. (www.cargoholdings.com), a leading provider of air cargo transportation and related services to domestic and foreign air carriers, and other companies that outsource their air cargo lift requirements. ABX Air is a Part 121 operator and holds a Part 145 FAA Repair certificate.
Through four subsidiaries, including two companies with separate and distinct U.S. FAA Part 121 Air Carrier Certificates, CHI also provides aircraft leasing, airport ground services, fuel management, specialized transportation management, and air charter brokerage services.
Safe Harbor Statement
Except for historical information contained herein, the matters discussed in this release contain forward-looking statements that involve risks and uncertainties. ABX Holdings, Inc. and its subsidiaries' actual results may differ materially from the results discussed in the forward-looking statements. There are a number of important factors that could cause ABX Holdings' actual results to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, the ability to effectively integrate and obtain synergies from the combination of ABX Air and CHI and other factors that are contained from time to time in ABX Air’s and ABX Holdings’ filings with the U.S. Securities and Exchange Commission, including ABX Holdings’ Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should carefully review this release and should not place undue reliance on the Company's forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this release. ABX Holdings undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.


Contact:ABX Holdings, Inc.
Quint Turner, 937-382-5591 Source: ABX Air, Inc.

 

[rotor&wing]

ABX Air also said it is in discussions with DHL regarding ABX Air’s $92.3 million note payable to DHL. ABX Air has obtained a commitment from certain shareholders of CHI to provide subordinated financing for a portion of that amount if it becomes necessary to retire the note.

interesting.

 

[flyinboxes]

interesting.

Interesting indeed. They figured this would happen, the question now is what will it lead to?

Apparently DHL has possibly "called" it and ABX is prepared to pay it. What does this mean for ABX as a takeover target? If they pay it, they are then free to buy back their own stock I believe.

 

[ABXbooger]

Welcome to the circus Cappy and ATI. I truly hope we all can work together to not only grow our combined company, but to better all of our career expectations.

 

[FreightBumper]

Interesting indeed. They figured this would happen, the question now is what will it lead to?

Apparently DHL has possibly "called" it and ABX is prepared to pay it. What does this mean for ABX as a takeover target? If they pay it, they are then free to buy back their own stock I believe.

It could also mean that ABX has offered to pay it. That would move them further out from under the thumb of DHL. Unlike some other ACMI carriers that operate from ILN.

 

[b707guy]

Welcome to the circus Cappy and ATI.

Thanks! We've sure had our own unending supply of tricks and animal antics over the years, so it'll be nice to be subject to some creative new ways to be used. I'm sure our respective scheduling departments will be conspiring to share their book of nefarious tactics.

I'm not sure where all this could lead, but I'm confident it'll be better for all of us once the dust has a chance to settle.

Happy New Year!

 

[MrSky]

...nefarious....

Wow there is a .25 cent word!

 

[erichartmann]

Wow there is a .25 cent word!

One should never use a $.05 word where a $.25 or better yet a $.50 cent word will do.

Our various unions really need to get together now and compare notes. Ideally, we all need to be in the same union. At the very least, we all need to present the same contract proposals to management, and get mirror agreements.

 

[Flyer8]

Good thoughts,but...

Good thoughts about the same union,but I am sure there are some who wouldn't want to be in the same local as you guys for several reasons.Number one being that we are all still very,very separate companies even though ABX owns all of us. Many would say "I'll bet they will take good care of the red-headed step-children who fly at much cheaper rates". (Not our fault ,entirely. Getting money out of this company is like getting blood out of a stone). Number 2 reason is that Cappy just joined ALPA and that would be hard to reverse.I agree that all of us being Teamsters would make any dealings in the future a whole lot easier. As far as mirror contracts and wages,be careful what you ask for...you may end up with a mirror image of ours! The only way I ever see any parity is if they merge all the airlines together,and I think that will be a cold day in Hell when that happens...Just my opinion...

 

[countbat]

Funny how everyone is talking about one union, more rights but not one single person is wondering if "tomorrow" there will have a job.
I would raise different questions.
Will ABX keep all 3 companies or just one? Will the 3 companies be in the same structure and number of employees and for how long? Will the 3 companies grow or reduce? ETC...ETC
What about make sure to have a job first, second companies make money, keep the cost down, no downsizing, there is enough business and growth and after that talk about more money and some other issues. Wish you only well to everyone.

 

[erichartmann]

Good thoughts about the same union,but I am sure there are some who wouldn't want to be in the same local as you guys for several reasons.Number one being that we are all still very,very separate companies even though ABX owns all of us. Many would say "I'll bet they will take good care of the red-headed step-children who fly at much cheaper rates". (Not our fault ,entirely. Getting money out of this company is like getting blood out of a stone). Number 2 reason is that Cappy just joined ALPA and that would be hard to reverse.I agree that all of us being Teamsters would make any dealings in the future a whole lot easier. As far as mirror contracts and wages,be careful what you ask for...you may end up with a mirror image of ours! The only way I ever see any parity is if they merge all the airlines together,and I think that will be a cold day in Hell when that happens...Just my opinion...

I have little doubt our mutual management at ABX Holding will make that play. Graber has already told us that in the future aircraft will go where they can make the most money. Upper management is already set to pit one pilot group against the other. The real race to the bottom will begin shortly unless we can all get together.

 

[DC8 Express]

>>>>>>>>>>>Upper management is already set to pit one pilot group against the other. The real race to the bottom will begin shortly unless we can all get together.<<<<<<<<<<<<<<<

Too late for that. This is the beginning of the end. I for one am keeping my options open. Original ABX pilots including me better hope DHL continues to use ABX for a long long time or we will all be working for half.

 

[GoABX]

The Teamster scope language with respect to the other 2 airlines joining the family (ABX umbrella) is actually pretty clear. You can be 100% sure that the Ford&Harrison boys will come up with some whacking angle for why it doesn't apply in this case.

After the Nosaka Domicile case, I have come to understand there is no thing as air tight cases.

 

[erichartmann]

The Teamster scope language with respect to the other 2 airlines joining the family (ABX umbrella) is actually pretty clear. You can be 100% sure that the Ford&Harrison boys will come up with some whacking angle for why it doesn't apply in this case.

After the Nosaka Domicile case, I have come to understand there is no thing as air tight cases.

I thought F&H's scrivner's error excuse was pretty lame. The judge made it pretty clear he wasn't buying it. OTOH, he did jump on the CBA language to kick the thing out of his court and into someone else's hands.

No telling what F&H will come up with on scope.

 

[Jurasicpilot]

>>>>>>>>>>>Upper management is already set to pit one pilot group against the other. The real race to the bottom will begin shortly unless we can all get together.<<<<<<<<<<<<<<<

Too late for that. This is the beginning of the end. I for one am keeping my options open. Original ABX pilots including me better hope DHL continues to use ABX for a long long time or we will all be working for half.

Neah, not quite "half" but close.

 

[Guam360]

what are the current destinations for ABX out of MIA?

thanks