Delta lenders support US Air offer

[USARET]

Delta lenders seen supporting US Air offer

Some bondholders of bankrupt airline join in order to overcome opposition from Georgia-based airline's management, says report.

November 22 2006: 6:42 AM EST


NEW YORK (Reuters) -- Some bondholders of bankrupt airline Delta have begun organizing an informal group to support US Airways' $8.78 billion takeover offer, the Wall Street Journal reported on its Web site on Wednesday.
That could help the bid overcome initial opposition from the Atlanta carrier's management and skepticism from some of its larger creditors, the paper said.
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In conference calls yesterday with Deutsche Bank and Lehman Brothers (Charts) , bondholders were urged to band together to pressure Delta to fully consider the bid from US Airways (Charts), the paper said.
The effort by both banks, which are Delta (Charts) creditors, is aimed at creating a second group of creditors with some say in the airline's restructuring, it said.

Let's hope the Delta boys can pull this out!

 

[michael707767]

NEW YORK (Reuters) -- Some bondholders of bankrupt airline Delta have begun organizing an informal group to support US Airways' $8.78 billion takeover offer.........In conference calls yesterday with Deutsche Bank and Lehman Brothers (Charts) , bondholders were urged to band together to pressure Delta to fully consider the bid from US Airways (Charts), the paper said.

Some bond holders want Delta to fully consider the offer. Does not sound like a big amount of support for the offer.

 

[spinproof]

Couch it any way you will this is not a good sign. I believe it is a call for all Bondholders to unite!

 

[michael707767]

Couch it any way you will this is not a good sign. I believe it is a call for all Bondholders to unite!

you're right. But if its such a good offer, why would there even be a call for all bondholders to unite? Wouldn't they already be united?

 

[9rj9]

why risk it?

This deal goes through. Never forget, this is about BIG MONEY, its not which business works, routes, employees, or anything else. This is the Wall Street money making machine and it only cares about money, the fast, sure, money.
If you can't beat them join'em. Better start working a deal know, cause US Air furloughee list runs deep.

 

[flaps30]

How will they merge the lists?

How do they normally put the pilot groups together? One for one would be terrible for the junior delta guys including the ones on the street.

 

[80for80]

How do they normally put the pilot groups together? One for one would be terrible for the junior delta guys including the ones on the street.

You mean like the General :laugh:

 

[Yuppyguppy]

Let merger mania begin...unfortunately in BK the creditors have the say and I doubt the judge will extend the exclusivity period..

 

[Princedietrich]

How do they normally put the pilot groups together? One for one would be terrible for the junior delta guys including the ones on the street.

Well I really hope it wouldn't happen this way but it has in the past. Being the dominant or buying airline, US Air very well could just staple the Delta list to the bottom of theirs. Suddenly the most senior Delta guys just became bottom feeders.

What better way to enrage an entire pilot group.

 

[TWA Dude]

Being the dominant or buying airline, US Air very well could just staple the Delta list to the bottom of theirs.

NO! USAirways could not do that and you do nobody any favors by saying that. ALPA Merger Policy would apply. The two sides would meet and if an agreement isn't reached it goes to binding arbitration. From the ALPA by-laws:

integration until a fair and equitable agreement is reached, keeping in mind the following goals, in no particular order:

a. Preserve jobs.
b. Avoid windfalls to either group at the expense of the other.
c. Maintain or improve pre-merger pay and standard of living.
d. Maintain or improve pre-merger pilot status.
e. Minimize detrimental changes to career expectations.


The AWA/USairways arbitration meetings begin the first week in December and a result is expected by late Spring.