CLARKGRSWOLD
Well-known member
- Joined
- Sep 28, 2007
- Posts
- 278
Dear Fellow Employee,
I wanted to take a minute to update you on the progress of our restructuring. We recently had a meeting in New York with the Committee of Unsecured Creditors and an “omnibus” hearing in the Bankruptcy Court – essentially a hearing in which multiple motions are reviewed by the Court. We feel both of these proceedings went well. As you might imagine in a restructuring of this size, there are many parties, each representing their particular interest. The Committee of Unsecured Creditors represents these varied interests and coordinates their interaction with both Management and the Bankruptcy Court.
In addition to the creditors committee meeting this week, the Bankruptcy Court held the first omnibus hearing, the Bankruptcy Court issued Orders regarding several important areas of our operations including: establishing notification and hearing procedures, approving payments to certain vendors, authorizing the continuation of the Company’s workers compensation, insurance programs, fuel supply and storage contracts, approved key elements of employee wage motion, approved customer service programs and authorized the payment of taxes, passenger facility charges, fuel taxes and other similar taxes and fees. While these categories may seem mundane, the approval granted by the Court represents important steps in our restructuring process and will all be funded through our continuing operations.
The Bankruptcy Court also approved an agreement the Company reached with Raytheon regarding the return of the 20 Beech 1900 aircraft that had been parked since the shut down of Air Midwest. The return of these aircraft represents a milestone in our efforts to eliminate excess aircraft from our fleet. What may be equally important is that this agreement was reached in cooperation with Raytheon and will result in savings to the Company of approximately $500,000 per month as well as a reduction in debt owed by the Company of approximately $32 million. Not only are the financial savings important to the Company but it is also important that our creditors understand our situation and have expressed a willingness to work with us in this type of cooperative manner. While this progress does not mean that our continued work ahead will not be without challenges – it nonetheless provides a start upon which to continue our reorganization and work towards our emergence from bankruptcy.
We have been communicating regularly with the various stakeholders in our restructuring including in particular our code share partners. Both US Airways and United have voiced support for our reorganization efforts – as you might imagine, our communication with Delta has focused on operational discussions largely due to the pending litigation between our companies.
I would like to again say thanks to everyone for your continued support. I understand your desire to be keep informed on our progress and hope that this message gives you encouragement. We have very good people here and we will need everyone to remain focused on our shared goals during our reorganization. Working together we will get through this challenge successfully.
Thank you again for your continued hard work and dedication. You have my commitment that I will keep you well informed as we move through this process. As always please feel free to email me if you have any questions. Have a nice week and stay warm!
Regards,
Jonathan
I wanted to take a minute to update you on the progress of our restructuring. We recently had a meeting in New York with the Committee of Unsecured Creditors and an “omnibus” hearing in the Bankruptcy Court – essentially a hearing in which multiple motions are reviewed by the Court. We feel both of these proceedings went well. As you might imagine in a restructuring of this size, there are many parties, each representing their particular interest. The Committee of Unsecured Creditors represents these varied interests and coordinates their interaction with both Management and the Bankruptcy Court.
In addition to the creditors committee meeting this week, the Bankruptcy Court held the first omnibus hearing, the Bankruptcy Court issued Orders regarding several important areas of our operations including: establishing notification and hearing procedures, approving payments to certain vendors, authorizing the continuation of the Company’s workers compensation, insurance programs, fuel supply and storage contracts, approved key elements of employee wage motion, approved customer service programs and authorized the payment of taxes, passenger facility charges, fuel taxes and other similar taxes and fees. While these categories may seem mundane, the approval granted by the Court represents important steps in our restructuring process and will all be funded through our continuing operations.
The Bankruptcy Court also approved an agreement the Company reached with Raytheon regarding the return of the 20 Beech 1900 aircraft that had been parked since the shut down of Air Midwest. The return of these aircraft represents a milestone in our efforts to eliminate excess aircraft from our fleet. What may be equally important is that this agreement was reached in cooperation with Raytheon and will result in savings to the Company of approximately $500,000 per month as well as a reduction in debt owed by the Company of approximately $32 million. Not only are the financial savings important to the Company but it is also important that our creditors understand our situation and have expressed a willingness to work with us in this type of cooperative manner. While this progress does not mean that our continued work ahead will not be without challenges – it nonetheless provides a start upon which to continue our reorganization and work towards our emergence from bankruptcy.
We have been communicating regularly with the various stakeholders in our restructuring including in particular our code share partners. Both US Airways and United have voiced support for our reorganization efforts – as you might imagine, our communication with Delta has focused on operational discussions largely due to the pending litigation between our companies.
I would like to again say thanks to everyone for your continued support. I understand your desire to be keep informed on our progress and hope that this message gives you encouragement. We have very good people here and we will need everyone to remain focused on our shared goals during our reorganization. Working together we will get through this challenge successfully.
Thank you again for your continued hard work and dedication. You have my commitment that I will keep you well informed as we move through this process. As always please feel free to email me if you have any questions. Have a nice week and stay warm!
Regards,
Jonathan
All of you suck.
