ABX Air Declares DHL in Fault of Agreement

[abxaviator]

Round and round she goes, where she stops nobody knows!

 

[Jurassic Jet]

$3.82 now.

Look out below. $3.58 (-37%)

 

[HeavyjetDC8]

Maybe we're seeing pieces of a master plan come together here.

or we're seeing a master plan going to pieces

I doubt that the initial master plan survived the first few hours of contact with reality once ABX was purchased and Astar spun off. An express freight distribution network requiring service yet the logistics seemingly overwhelmed the tactical plan. Makes you wonder that if DHL had to do it again, would they?

 

[Reebo]

Look out below. $3.58 (-37%)

Dont' worry, the Dukes are making the call

 

[Jurassic Jet]

A few tidbits from todays 8-K filing: (Red italics are emphasis added by me)

You can view the entire filing here:

http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0001181431-07-067819&Type=HTML

On November 6, 2007 ABX responded to DHL by giving a notice of occurrence of event of default under the Agreements. It is ABX's position that under the Agreements, DHL was explicitly required to make all payments due to ABX regardless of whether it was disputing such amounts. To the extent DHL contested any such amount DHL could seek recovery in accordance with the general dispute resolution process under the Agreements only after it has paid and ABX has received the disputed amount. Moreover, ABX strongly disputes the validity of DHL's claims. Under each of the Agreements DHL had two business days to cure its breach by making the required payments. If DHL did not cure its breach during this period of time, ABX became entitled to terminate each of the Agreements. On November 8, 2007, DHL responded to ABX's notice of occurrence of event of default and claimed that DHL had no payment obligations with respect to the withheld amounts. As of the close of business on November 8, 2007, DHL had not cured its breach under either of the Agreements.

ABX intends to consider which of its options to exercise with respect to the dispute, including but not limited to terminating the Agreements, pursuing the dispute resolution process set forth in the Agreements, negotiating with DHL to resolve the disputed issues, or any other option available to ABX at law or in equity. In the meantime, ABX intends to continue to provide the same high quality services to DHL that it has provided to date.

 

[abxaviator]

Looks to be settling in the $3.50's range. That makes for a quarter BILLION discount off Daz's previous bid!

 

[trijetter]

Dont' worry, the Dukes are making the call

Buy more Frozen Orange Juice!

 

[flyinboxes]

This may kill the CHI deal. No bank will get in the middle of this now unless the deal has closed. Has it?

 

[shooter]

okay, time to calm down now. After speaking with a few family friends it seems that this may be a dagger in the heart of an Astar buyout of ABX. Seems that since DHL owns 49% of Astar the SEC may investigate both companies (DHL and ABX) for possible collusion since the stock price is down as a result of an announcement of non-payment by DHL. Seems that manipulating stock prices by withholding payment so you can buy up remaining shares at a deflated price is against the law. Who would have figured? So unless DHL plans to remove ABX from the network, which is possible, neither DHL or Astar can benefit as a result of their actions.

Oh well, this may kill the JAN deal too.

 

[hvydriver]

okay, time to calm down now. After speaking with a few family friends it seems that this may be a dagger in the heart of an Astar buyout of ABX. Seems that since DHL owns 49% of Astar the SEC may investigate both companies (DHL and ABX) for possible collusion since the stock price is down as a result of an announcement of non-payment by DHL. Seems that manipulating stock prices by withholding payment so you can buy up remaining shares at a deflated price is against the law. Who would have figured? So unless DHL plans to remove ABX from the network, which is possible, neither DHL or Astar can benefit as a result of their actions.

Oh well, this may kill the JAN deal too.

All that is certainly possible, but why did Hete make the announcement? Was it due to him stating the company was in danger of defaulting on some loans? I presume he's referring to the 767's. He wasn't specific in the 8k.