skykid said:
. . . The ATSB never loaned U anything. They do oversee loan GUARANTEES . . .
This is accurate in that the ATSB has no "funds" to loan, only the banks have that. However, the Board allows the banks to "loan" USAirways millions with the backing (read "guarantee") of taxpayer funds should USAirways default on the bank's "loans". The lenders would recoup any outlay based upon the Board's guarantee, so it's a no lose for them should U liquidate. A Chapter 7 fiiling would then place the ATSB, with the collateral of aircraft and parts, in the same line as the rest of the creditors committee (GECAS, Chase, Airbus, Boeing, ALPA, et al) for distribution of assets to fund their liability, all at the discretion of the overseeing judge and under applicable bankruptcy statutes ("ATSB Guarantee", Section 6.01). This
does make the taxpayers, in essence, creditors in a long line seeking repayment in what would likely be pennies-on-the-dollar repayment. And the language of the ATSB guarantee itself says that "the Guarantee constitutes a guarantee of payment and not collection" (Section 2.02). If you'd like to read the entire document, here is the link:
http://www.treas.gov/offices/domestic-finance/atsb/guaragree.pdf
Where I also have trouble is with the requirement under the original Guarantee application (
http://www.treas.gov/offices/domestic-finance/atsb/atsbapplication.pdf) where it requires (Section 4. B., i.-iv.) a complete accounting of their business plan and exit strategy and funding, which USAirways still does not have (plan or financing) since they are
still in search of $250 million exit funding. Also read Section 4. G. that specifically ties the application (and eventual lending of $$) to the effects of 9/11. It's hard to believe USAirways' continued problems (which existed to a great degree prior to 9/11)
still result from an event 3 1/2 years ago, particularly after filing bankruptcy for a
second time in two years with it's 3rd seperate management team.
I, too, find it inconceivable to "wish ill will" on any individual at USAirways. I truly wish the best for all effected by this drama. But setting emotion aside, and looking strictly at the risk placed upon our tax dollars for backing a guarantee to an airline losing $1.3 million per day ($700 million in 2004) with no exit financing ($250 million required) and no exit plan, I think it's prudent to have concerns.
Red
