General Lee
Well-known member
- Joined
- Aug 24, 2002
- Posts
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So, I pciked up a copy of the WSJ to read the actual article, and a lot was left out in those subsequent Reuters etc threads. It was a big article, but here is a few major highlights that were missed:
"In conference calls yesteday with Deutsche Bank AG and Leman Brothers, bondholders were urged to band together to pressure Delta--which is under BK court protection--to fully consider the hostile bid from USAirways. The effort by both banks, which are Delta creditors, is aimed at creating a second group of crediotrs with some say in the airline's restructuring. Currently, the resturcturing ultimately must be approved by the official committee of unsecured creditors, which is dominated by much larger creditors."
"The outcome of the meetings wasn't immediately clear, and it remains to be seen how much leverage a splinter group could have in the takeover fight and it's strategy for exerting influence. The bondholders being pitched to combine forces represent 30% of the total $16 billion-18 billion claim that will eventually serve as the basis for dolling out equity in post BK Delta."
"The varied interests of individual creditors are likely to be a significant factor. Boeing Co., for example, is a long standing seller of aircraft to Delta, while USAirways is leaning towards Airbus. Other committee members include U.S. Bancorp, the PBGC, Coca Cola, and Fidelity." (also DALPA)
"The creation of an ad hoc creditor group in large BK cases isn't unusual, but some executives and employee groups have critisized such investors for their short term interests, rather than looking out for the longer range good of employees and companies trying to restructure."
"Delta CFO Ed Bastain said in an interview Friday that Delta believes it's plan to emerge as a stand alone company will prove superior to USAirways' offer, especially in light of the "transaction risks" inherent in a merger plan. A Delta spokewomen yesterday said Mr Bastian's comments still stood."
Those were things left out of the other blurbs. Buy a copy of today's WSJ and see for yourself. Again, you can find the article on page A3 under "Some Delta Bondholders Try to Form Splinter Group."
Bye Bye--General Lee
"In conference calls yesteday with Deutsche Bank AG and Leman Brothers, bondholders were urged to band together to pressure Delta--which is under BK court protection--to fully consider the hostile bid from USAirways. The effort by both banks, which are Delta creditors, is aimed at creating a second group of crediotrs with some say in the airline's restructuring. Currently, the resturcturing ultimately must be approved by the official committee of unsecured creditors, which is dominated by much larger creditors."
"The outcome of the meetings wasn't immediately clear, and it remains to be seen how much leverage a splinter group could have in the takeover fight and it's strategy for exerting influence. The bondholders being pitched to combine forces represent 30% of the total $16 billion-18 billion claim that will eventually serve as the basis for dolling out equity in post BK Delta."
"The varied interests of individual creditors are likely to be a significant factor. Boeing Co., for example, is a long standing seller of aircraft to Delta, while USAirways is leaning towards Airbus. Other committee members include U.S. Bancorp, the PBGC, Coca Cola, and Fidelity." (also DALPA)
"The creation of an ad hoc creditor group in large BK cases isn't unusual, but some executives and employee groups have critisized such investors for their short term interests, rather than looking out for the longer range good of employees and companies trying to restructure."
"Delta CFO Ed Bastain said in an interview Friday that Delta believes it's plan to emerge as a stand alone company will prove superior to USAirways' offer, especially in light of the "transaction risks" inherent in a merger plan. A Delta spokewomen yesterday said Mr Bastian's comments still stood."
Those were things left out of the other blurbs. Buy a copy of today's WSJ and see for yourself. Again, you can find the article on page A3 under "Some Delta Bondholders Try to Form Splinter Group."
Bye Bye--General Lee
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