Gemini Chapter 11

[Junkflyer]

UPS likes to buy airplanes, not the pilots that were flying them.

 

[DrProc]

What history is that?

It takes a lot more time and money to merge seniority lists than it does to just buy the airplanes and train newhires.

 

[OPECJet]

UPS gave the finger to Challenge Air Cargo guys when they were bought out.

Not sure if it had anything to do with the pilots union (UPS) or not.

 

[cargoflyr69]

I thought that the parent company that owns Gemini also owns Bayside Capital (among others). Is this possibly just another corporate shell game to legally shuffle money around? Seems bankruptsy is the only "competitive" way to do business anymore... sad.

 

[fogrunner]

I thought that the parent company that owns Gemini also owns Bayside Capital (among others). Is this possibly just another corporate shell game to legally shuffle money around? Seems bankruptsy is the only "competitive" way to do business anymore... sad.

What The Carlyle Group. No. We should be out of BK in 60 to 90 days.

 

[cargoflyr69]

I thought Carlyle had their hands in the BK financing, nevermind.

 

[kevdog]

UPS gave the finger to Challenge Air Cargo guys when they were bought out.

Not sure if it had anything to do with the pilots union (UPS) or not.

UPS is Teamsters. Challenge Air Cargo (now Centurion) is also Teamsters. Same Union. My understanding of UPS is every pilot goes through the same hiring process as everyone else.

UPS did hire 1 Challenge crewmember who had some Miami management position there. He hated it, quit, and is now back at Centurion (Challenge). I think UPS was dumbfounded that he did not want the job anymore.

I do have some questions about Gemini. If you were profitable last year, why are you now in CH 11? Isn't it a little early in the year? It's gotta be bad for your credit with fuel vendors, etc. Do you think Gemini is better or worse off without Stockbridge?

Good luck!!!

 

[Reebo]

Good luck to all at Gemini. All of you guys, especially fogrunner, have been very helpful in providing information to those of us who are looking to get into the cargo side of things.

 

[PCL_128]

UPS is Teamsters.

UPS isn't Teamsters. They have their own union called the IPA (Independent Pilots Association).

 

[fogrunner]

I do have some questions about Gemini. If you were profitable last year, why are you now in CH 11? Isn't it a little early in the year? It's gotta be bad for your credit with fuel vendors, etc. Do you think Gemini is better or worse off without Stockbridge?

Our debt was killing us.

John Bolduc, Managing Director of Bayside Capital, commented, "We are pleased to have participated with Gemini in restructuring the balance sheet of this strong company. We look forward to becoming its majority owner and supporting the growth of the business."

No furloughs, no paycuts, business as usual. No 1113c. Contract negotiations going forward.

Dulles, VA – March 15, 2006 -- Gemini Air Cargo, Inc. (“Gemini” or the “Company”) announced that it has successfully completed its negotiations to restructure all of its senior secured debt with nearly 95% of its lenders, including affiliates of Bayside Capital, Inc. (“Bayside”). To implement the restructuring, Gemini has filed a pre-negotiated, voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Florida. The highlights of these filings include: i) a fully committed Debtor-in-Possession (“DIP”) financing; ii) a detailed plan of reorganization which significantly reduces the outstanding indebtedness on Gemini’s balance sheet, and iii) agreements with Gemini’s majority equity holders and 93.4% of its secured lenders to vote in favor of this plan of reorganization.

What we are being told is, we should exit CH 11 in 60-90 days.

Unlike many recent U.S. airline bankruptcies, we have negotiated both the interim financing to provide the necessary liquidity to work quickly through the Chapter 11 process and we have secured the financing necessary to emerge from bankruptcy as a stronger, healthier airline. This financing commitment will allow us to minimize the time spent in Chapter 11, and complete the process by this summer.

I spoke with a friend in Dulles. He said do not be surprised to see new-hires by the third qtr.

There will be no change in the operations, fleet or employee pay or benefits
There will be no change in management or the leadership team
Gemini is profitable, has good long-term contracts, and on-time performance is at an all time high