Gordon is in the DAL Game!

[Texx]

http://yahoo.reuters.com/news/artic...2-22_21-48-54_N22313984&type=comktNews&rpc=44

 

[ACL65PILOT]

What do you think the chances of a merger happening? I would love to go to DAL but to be on the street in a year is not a fun picture to paint.

 

[zkmayo]

He's getting a nice payday to do that work ie 250k every 10days.

 

[ACL65PILOT]

I think that means that the creditors want a better deal and are willing to pay to get that deal sooner than later.

 

[ironspud]

AP
Creditors Urge Delta to Weigh Options
Friday December 22, 4:38 pm ET
By Harry R. Weber, AP Business Writer Unofficial Creditors Committee Urges Delta to Consider Options

ATLANTA (AP) -- Seventeen creditors who hold $2.25 billion in unsecured claims against Delta Air Lines Inc. in its bankruptcy case urged the carrier Friday to consider alternatives to its stand-alone reorganization plan.
Their announcement comes a day after the chief executive of US Airways Group Inc. issued a scathing rebuke of Delta's stand-alone reorganization plan and said he is more determined than ever to push ahead with his company's hostile $8.3 billion bid to buy Delta.

The 17 creditors, who form an unofficial committee of unsecured claimholders, said in a statement that while they appreciated Delta's progress to date in its restructuring efforts, the committee "expects Delta to consider methodically, proactively and fairly strategic alternatives to its proposed stand-alone Chapter 11 plan to ensure that creditor recoveries are maximized in the Chapter 11 process."

The statement said the unofficial committee consists of 17 members that hold unsecured notes, unsecured deficiency claims relating to aircraft equipment leasing arrangements and other unsecured claims totaling more than $2.25 billion of unsecured claims against Delta.

The total estimated value of all unsecured claims in Delta's case, which it disclosed in its reorganization plan, is roughly $15 billion, Delta spokesman Michael Freitag said. That means the unofficial creditors committee represents only 15 percent of the total claims. Also, Delta's pilots union, which supports management's desire to remain an independent carrier, holds an almost equal share of unsecured claims, $2.1 billion.

A spokesman for the committee, Todd Miller, did not elaborate on the committee's statement.

Freitag said Delta will consider what the committee has to say "even though they are not an officially sanctioned voice in the Chapter 11 process." He added, "As we have stated previously, we intend to move forward in a constructive manner that serves the best interest of our creditors and other stakeholders."

That committee is separate from the official committee of unsecured creditors in Delta's bankruptcy case that has a key role in deciding Delta's fate.
The official committee has said it supports Delta's decision to file its stand-alone reorganization plan on Tuesday, but will also weigh alternatives.
Other creditors, such as those on the unofficial committee, could put pressure on larger creditors to force Delta's hand. It remains to be seen how that will all play out.

Typically, in each class of creditors, Delta's plan would have to be approved by holders of two-thirds of the claims and a majority of the number of individual creditors. If a class is not impaired -- that is, if they are guaranteed of getting all of their money back no matter what -- they generally don't get to vote.

If one or more classes of creditors do not approve the plan, Delta could still confirm the plan through a so-called cramdown, a maneuver in which it must show the court that the dissenting class will receive more under the plan than it would under a Chapter 7 liquidation. The company also would have to show that any subordinate class, such as shareholders, would get nothing in the way of recovery under the reorganization plan.
Delta already has met that second test because its plan calls for current shares of the company to be wiped out.

If a competing plan were filed, creditors would vote on each individually. There have been bankruptcy cases where two competing reorganization plans were approved by creditors; in such a case, a judge decides which plan is confirmed after holding a hearing to determine which plan is in the "better interest" of the creditors.

As Christmas approached, US Airways CEO Doug Parker's comments Thursday made it clear his company isn't going to back down. Delta shot back Thursday that it hasn't changed its position that it wants to remain independent, intensifying the war of words that started when Tempe, Ariz.-based US Airways disclosed its offer to buy Atlanta-based Delta on Nov. 15.

 

[luckytohaveajob]

Gordon Advocates Merging

Gordon has made many public statements supporting mergers should happen.

 

[Ex737Driver]

He's also shot his mouth off more times than a AC-130 gunship and isn't always right.

 

[Heavy Set]

AP
Creditors Urge Delta to Weigh Options
Friday December 22, 4:38 pm ET
By Harry R. Weber, AP Business Writer Unofficial Creditors Committee Urges Delta to Consider Options

ATLANTA (AP) -- Seventeen creditors who hold $2.25 billion in unsecured claims against Delta Air Lines Inc. in its bankruptcy case urged the carrier Friday to consider alternatives to its stand-alone reorganization plan.
Their announcement comes a day after the chief executive of US Airways Group Inc. issued a scathing rebuke of Delta's stand-alone reorganization plan and said he is more determined than ever to push ahead with his company's hostile $8.3 billion bid to buy Delta.

The 17 creditors, who form an unofficial committee of unsecured claimholders, said in a statement that while they appreciated Delta's progress to date in its restructuring efforts, the committee "expects Delta to consider methodically, proactively and fairly strategic alternatives to its proposed stand-alone Chapter 11 plan to ensure that creditor recoveries are maximized in the Chapter 11 process."

The statement said the unofficial committee consists of 17 members that hold unsecured notes, unsecured deficiency claims relating to aircraft equipment leasing arrangements and other unsecured claims totaling more than $2.25 billion of unsecured claims against Delta.

The total estimated value of all unsecured claims in Delta's case, which it disclosed in its reorganization plan, is roughly $15 billion, Delta spokesman Michael Freitag said. That means the unofficial creditors committee represents only 15 percent of the total claims. Also, Delta's pilots union, which supports management's desire to remain an independent carrier, holds an almost equal share of unsecured claims, $2.1 billion.

A spokesman for the committee, Todd Miller, did not elaborate on the committee's statement.

Freitag said Delta will consider what the committee has to say "even though they are not an officially sanctioned voice in the Chapter 11 process." He added, "As we have stated previously, we intend to move forward in a constructive manner that serves the best interest of our creditors and other stakeholders."

That committee is separate from the official committee of unsecured creditors in Delta's bankruptcy case that has a key role in deciding Delta's fate.
The official committee has said it supports Delta's decision to file its stand-alone reorganization plan on Tuesday, but will also weigh alternatives.
Other creditors, such as those on the unofficial committee, could put pressure on larger creditors to force Delta's hand. It remains to be seen how that will all play out.

Typically, in each class of creditors, Delta's plan would have to be approved by holders of two-thirds of the claims and a majority of the number of individual creditors. If a class is not impaired -- that is, if they are guaranteed of getting all of their money back no matter what -- they generally don't get to vote.

If one or more classes of creditors do not approve the plan, Delta could still confirm the plan through a so-called cramdown, a maneuver in which it must show the court that the dissenting class will receive more under the plan than it would under a Chapter 7 liquidation. The company also would have to show that any subordinate class, such as shareholders, would get nothing in the way of recovery under the reorganization plan.
Delta already has met that second test because its plan calls for current shares of the company to be wiped out.

If a competing plan were filed, creditors would vote on each individually. There have been bankruptcy cases where two competing reorganization plans were approved by creditors; in such a case, a judge decides which plan is confirmed after holding a hearing to determine which plan is in the "better interest" of the creditors.

As Christmas approached, US Airways CEO Doug Parker's comments Thursday made it clear his company isn't going to back down. Delta shot back Thursday that it hasn't changed its position that it wants to remain independent, intensifying the war of words that started when Tempe, Ariz.-based US Airways disclosed its offer to buy Atlanta-based Delta on Nov. 15.

So, creditors with only $2.5 billion of the total $15 billion in claims want Delta and the OFFICIAL creditors to take a good look at what is out there. Doesn´t mean much, since they aren´t on the official committee, and their claims are actually less than Dalpa´s total. I think they also want to look at other options too, like Northwest. They just stated they wanted Delta to look at ¨strategic alternatives.¨ I bet Grinstein is looking for a better deal than USair´s.

 

[Heavy Set]

Gordon has made many public statements supporting mergers should happen.

He also knows how precious it is to have happy employees, which he had at CAL. He wanted to merge with DL in the late 90s because of the ¨trust¨ most of the DL employees had with Delta, the non union ones. He knows that customer service would take a nose dive and trust would go out the window in a hostile takeover. He didn´t like Leo Mullin at DL, but he has been gone for years now. I think he will take a good hard look at this takeover and base his judgement on what would be good for Delta and the creditors. And, no matter what he says, it could all fall through with the Transportation committee and the DOJ. But, Gordon will make $25,000 a day for 10 days.

 

[JT8D]

Also, Delta's pilots union, which supports management's desire to remain an independent carrier, holds an almost equal share of unsecured claims, $2.1 billion.

.

Hey Ironspud...did Delta not hire you or somthing?

Do you really have...*ahem* T-41 listed as aircraft flown?

 

[Tejas-Jet]

Do you really have...*ahem* T-41 listed as aircraft flown?

Hey...hey...hey...don't beat up on the mighty T-41 Mescalero. Not many pilots out there have that Mach .15 patch.

Tejas

 

[Heavy Set]

I think I read the retired DL pilots also got a $700 million claim, and the current Dalpa pilots have a $2.1 billion claim.

 

[ironspud]

Hey Ironspud...did Delta not hire you or somthing?

Do you really have...*ahem* T-41 listed as aircraft flown?

Bet I have more time in the top of a loop in a trusty Mescalero than you have on long final in anything.

 

[JT8D]

Bet I have more time in the top of a loop in a trusty Mescalero than you have on long final in anything.

Bet I have more time upside down on fire with one flamed out shooting an an ILS than you have total...

 

[737 Pylt]

Hey Ironspud...did Delta not hire you or somthing?

Do you really have...*ahem* T-41 listed as aircraft flown?

Iron turd is a miserable puke flying for Southern Air. He sees that DL is turning around and is pissed about the decisions he has made in life!
Wouldn't you be pissed too if you had to work a 20 on 10 off schedule!
From what I hear, spud knocker is not really popular!

737

 

[Freight Dog]

Gordon gets around for sure....... chairman of our board, sits on Honeywell's board, and now this..... wow!

 

[Heavy Set]

Gordon gets around for sure....... chairman of our board, sits on Honeywell's board, and now this..... wow!

I wouldn´t be surprised if the DL BOD asked him to be CEO of the new, stand alone Delta.

 

[Noserider76]

I wouldn´t be surprised if the DL BOD asked him to be CEO of the new, stand alone Delta.

Good point. I don't think he was ready to leave CO when he and Bonderman decided to mutually leave to settle their pissing contest. The creditors may feel good about the DL standalone plan if Bethune looks at it and agrees to succeed Grinstein as CEO.

 

[warbirdfinder]

Heavy Set wrote:
He also knows how precious it is to have happy employees, which he had at CAL. He wanted to merge with DL in the late 90s because of the ¨trust¨ most of the DL employees had with Delta, the non union ones. He knows that customer service would take a nose dive and trust would go out the window in a hostile takeover. He didn´t like Leo Mullin at DL, but he has been gone for years now.

Happy employees with trust, including the union ones, began a change of heart when Ron Allen took over in 1988. Whatever "trust" was pretty much gone by the time Mullin showed up, he then proceeded to destroy whatever was left of the so called "family" at Delta and Mullin has not been gone that long.

 

[Tomct]

I think that GB would make an EXCELLENT CEO for the New Delta. He would definately keep it going in the right direction!!

 

[Freight Dog]

I doubt he'd take on the task of running an airline that's in direct competition with Continental.

Just my .02 cents.

 

[DLax85]

Bet I have more time upside down on fire with one flamed out shooting an an ILS than you have total...

Ironspud - Let JT8D go....as we both know, many (most) of the oldhead USAF pilots started their aviation career in the T-41 and are proud of it (I did/am)...in fact, I just reconnected with a buddy at FEDEX who was in my Hondo class in 1985...the last time we'd seen each other was at a Cope Thunder exercise in the PI in the late 80s...many thanks to all of the T-41 instructors who taught us the basics....they wore that .15 patch proudly!
Happy Holidays.

 

[CALnTX]

I doubt he'd take on the task of running an airline that's in direct competition with Continental.


It would be just another steal from the old CAL management team......Haustein has already joined the present management clowns over there and mad some postive changes

 

[~~~^~~~]

Gordon... phone home.

Perhaps the only road to a Guam base does not start in Houston. It would be a much better match than US Air. however, the integration shakes out I'd be happy to be one after TK.

 

[ACL65PILOT]

Is TK going back to DAL or is he going to stay out and continue the coporate gig in WI?

 

[General Lee]

Isn't Bonderman via his Texas Pacific Group one of the main parties involved with USAir (via AWA) and possibly with this takeover? As I remember it, Bonderman and Bethune hate each other, and in a major dispute both left CAL--Bonderman left the BOD and Bethune left his CEO job. I wonder how Gordon feels about Bonderman now?


Bye Bye--General Lee

 

[Widgeon]

737Pylt and JT8D-

IronSpud is one hell of an aviator and a true Gentleman! I believe your "intel" about him not being well liked is most sincerely incorrect- there is no reason to come on here bashing someone on BS you "heard" somewhere.

 

[JetMonkey]

Isn't Bonderman via his Texas Pacific Group one of the main parties involved with USAir (via AWA) and possibly with this takeover? As I remember it, Bonderman and Bethune hate each other, and in a major dispute both left CAL--Bonderman left the BOD and Bethune left his CEO job. I wonder how Gordon feels about Bonderman now?


Bye Bye--General Lee

Not anymore TPG sold it's stake when the merger happend.

 

[General Lee]

Not anymore TPG sold it's stake when the merger happend.

The DOJ would shoot it down regardless. Too much overlap. Everyone, including Gordon will see that. The two largest hubs are 220 miles apart, not including all of the upper East Coast hubs--PIT, CVG, JFK, PHL, and the Shuttles. And, 18 different fleet types. Ridiculous.


Bye Bye--General Lee

 

[General Lee]

Some of the recent quotes Gordon and others know

1. Oberstar (chairman of the transportations sub committee) said that by publicly exposing the potential dangers of airline consolidation, his committee may be able to "throw cold water" on merger mania. "We can nudge the Justice Department to take the action they must" to prevent a loss in competition, he said.
Oberstar also said opposition to consolidation is bipartisan. "I’ve heard from members on both sides of the aisle" as worries have grown about the impact on jobs and service, he said. "I haven’t heard anyone come forward and say this is a really good deal."




2. Standard & Poor's credit analyst Philip Baggaley says that Delta's proposed reorganization plan involves less risk than US Airways' merger proposal. "[The plan] would not face antitrust review by the Department of Justice, would not involve potentially difficult labor integration, and would not require the issuance of $4 billion in acquisition debt," said Baggaley in a Dec. 19 note. (S&P, like BusinessWeek.com, is owned by The McGraw-Hill Companies.)



3. The reasons Delta is saying no. Parker tries to refute them, but doesn't seem to understand the actual overlap and how the USAir/UAL deal was shot down over one area with overlap (IAD/DCA), versus the current huge overlap proposed in the USAir/DL takeover (LAS/PHX/SLC, CVG/PIT/JFK/PHL/Shuttles, and the really huge CLT/ATL overlap):

Company said that the U.S. Airways proposal was structurally flawed and could not be executed as claimed by U.S. Airways because of erroneous economic assumptions, higher debt-loads (needed to fund the merger), and, labor and antitrust issues. Insurmountable hurdles to the U.S. Airways deal include, but are not limited to the following:

1. The flawed economic assumptions underpinning the “synergies” in the US Airways proposal would result in vastly lower value than claimed by US Airways.
2. The combined company would have the highest total debt load in the airline industry -approximately $23 billion - seriously limiting its financial flexibility and ability to withstand the volatility of the airline industry (and would force the new entity to cut some 10,000 jobs).\
3. There are overwhelming labor issues that would preclude the combination from attaining the claimed synergies. The Delta unit of the Air Line Pilots Association, the union representing Delta’s more than 6,000 pilots, has said - and Delta agrees - that Delta’s pilot contract (which runs from June 1,2006 – December 31, 2009) would prohibit the combined company from implementing capacity reductions that US Airways asserts are the economic foundation of the proposed transaction. 4. The transaction is not likely to receive antitrust clearance from regulators because it would result in loss of competition, thereby, negatively impacting consumers and their communities: (i) The proposed merger would eliminate or reduce competition on thousands of domestic city pairs (origin and destination cities/airports), impacting millions of passengers per year; (ii) the combined entity would operate 52% of slots and 40% of gates at major East Coast airports; (iii) there would be no competitive low cost carrier presence (> 5% passenger share) at any of the 71 U.S. cities dominated by the merger; (iv) and, the deal would substantially reduce competition at Boston-Logan, New York-LaGuardia, and Washington-Reagan National airports (share position analysis based on passenger traffic); Ergo, city pair concentration and route dominance would lead to reduced competition, fewer discounted seats, and higher passenger fare levels—subjecting the US Airways proposal to a lengthy Department of Justice review process, during which Delta would be forced to remain in bankruptcy.




And, Parker says he could merge everything together by June of 2007, even though he isn't even close with his own USAir/AWA integration. The East Coast, West Coast ALPA unit (AWA and USAir) also publically denounced this merger for that reason. Keep it going Doug.....



Bye Bye---General Lee