New Article about US/DL--creditors hard to convince

[General Lee]

By Chris Reiter
NEW YORK, Jan 16 (Reuters) - US Airways Group Inc. (LCC.N: Quote, Profile , Research) still has a tall order to convince Delta Air Lines Inc. (DALRQ.PK: Quote, Profile , Research) creditors to accept its takeover offer, despite raising the bid by about 20 percent last week, industry veteran Gordon Bethune said on Tuesday.
Bethune, a former chief executive of Continental Airlines (CAL.N: Quote, Profile , Research), who became a key player in determining Delta's future when he was hired as a consultant by Delta's creditors' committee in December. Credited with rescuing Continental, the outspoken former executive said Delta's creditors' interests are so diverse that getting enough of them to back any proposal is "like herding cats."

Delta's creditors include planemaker Boeing Co. (BA.N: Quote, Profile , Research), pilots union Air Line Pilots Association, the city of Cincinnati and bondholders like Deutsche Bank.
"They're not all lined up on what's good for each other," Bethune said in a telephone interview.


US Airways, which has offered $10.5 billion in cash and stock for Delta, has set a Feb. 1 deadline for its bid unless it gets support from Delta's creditors to perform due diligence and postpone a Feb. 7 hearing that would start the voting process on Delta's stand-alone plan. Meanwhile, Delta management, which rejected the original bid, is pushing ahead with its plan and asked in a filing on Friday for court permission to start seeking creditor approval.

US Airways' bid, which was increased about 20 percent, keeps them in the game after creditors expressed concerns about the original offer, according to Bethune, who met with creditors and US Airways last week.
He said he doesn't yet have further meetings planned.
"I'm glad to see that the creditors are at least being offered more than they were in the past," said Bethune. "I know the creditors' committee is looking at that." Bethune declined to offer his own opinion of the U.S. Airways and Delta stand-alone plans and what the outcome may be. But he said he still supported industry consolidation.

"I can still be a proponent of marriage without agreeing that these two people have to get married," he said.



Bye Bye--General Lee

 

[400ADude]

More Spam.

 

[General Lee]

More Spam.

"I can still be a proponent of marriage without agreeing that these two people have to get married," he said. (Bethune)




SMACK.


Bye Bye--General Lee

 

[FDJ2]

Wow, good article General. Looks like Bethune isn't optimistic about Dougies chances. The clock keeps ticking on Dougies Feb. 1st deadline.

 

[737 Pylt]

More Spam.

Thanks chuckie. Stop back when you have less time! BTW, how goes that buyout from Air Tran. Better get your resume updated flight attendant einstien/chuck/lawman.

737

 

[MSNFlier]

Sharks...and blood in the water...

Respectfully, General Lee, I disagree with your premise that the article says what it appears to say. To me, it says that chaos may be in the offing for DL - something which may play into US Air's hands. If, as Bethune says, dealing with the unsecured creditors in this bk is like "herding cats," that's not good for DL. As lawyers, it's always easier to convince a judge to approve an agreement between adversaries - the judge almost always will go along unless the agreement is unconscionable.

Now, hear me out on this. As I've said before, most unsecured creditors only care about how much they're going to get on the dollar for their claims. From what I understand, at least two of the major unsecured creditors of DL have self-interest in seeing the airline survive: DALPA and Boeing. Most, if not all, of the remaining creditors could care less. For them, it's all about how much cash that creditor will get for each dollar of debt DL owed the creditor.

As I've opined earlier, there are no more shark-infested waters than a company in bankruptcy. The stakes are off the charts in this case. As you well know, the number of jobs affected by what happens in DL's bankruptcy in ATL, CVG, JFK, etc., etc., in the state of Washington and Kansas, among others, is tremendous.

Yet, it appears that the unsecured creditors may be creating a scenario where the decision is out of all their hands and in that of a judge. Old Lawyer Adage 1: You know you've got a fair deal when no one is happy. Old Lawyer Adage 2: You can part of the solution or you can have the solution imposed upon you.

We shall see.

 

[General Lee]

Respectfully, General Lee, I disagree with your premise that the article says what it appears to say. To me, it says that chaos may be in the offing for DL - something which may play into US Air's hands. If, as Bethune says, dealing with the unsecured creditors in this bk is like "herding cats," that's not good for DL. As lawyers, it's always easier to convince a judge to approve an agreement between adversaries - the judge almost always will go along unless the agreement is unconscionable.

Now, hear me out on this. As I've said before, most unsecured creditors only care about how much they're going to get on the dollar for their claims. From what I understand, at least two of the major unsecured creditors of DL have self-interest in seeing the airline survive: DALPA and Boeing. Most, if not all, of the remaining creditors could care less. For them, it's all about how much cash that creditor will get for each dollar of debt DL owed the creditor.

As I've opined earlier, there are no more shark-infested waters than a company in bankruptcy. The stakes are off the charts in this case. As you well know, the number of jobs affected by what happens in DL's bankruptcy in ATL, CVG, JFK, etc., etc., in the state of Washington and Kansas, among others, is tremendous.

Yet, it appears that the unsecured creditors may be creating a scenario where the decision is out of all their hands and in that of a judge. Old Lawyer Adage 1: You know you've got a fair deal when no one is happy. Old Lawyer Adage 2: You can part of the solution or you can have the solution imposed upon you.

We shall see.

I just posted the article and used a quote. I really can't say exactly what it means. But, it does show that Bethune isn't necessarily FOR this US takeover, and infact, may be telling the creditor committe that other mergers may be better for DL. That is the big statement of this article, the last sentence.

And, our management knew this was all coming. They warned us of possible attempts at our company, and knew the waters would become crowded with sharks. But, I also think our guys talk to the people incharge (the creditor committee) all of the time. Hopefully it is good dialog. We shall see indeed.


Bye Bye--General Lee

 

[Scope out RJ's]

More Spam.

Don't you ever get tired of wasting $10 on new memberships?

 

[400ADude]

Thanks chuckie. Stop back when you have less time! BTW, how goes that buyout from Air Tran. Better get your resume updated flight attendant einstien/chuck/lawman.

737

Hey,

I was watching American Idol tonight and they gave a preview of the Seattle episode. Looking at some of the contestants kinda made me think of you.:laugh: :laugh:

 

[flyboyike]

Question for everyone: is it possible that all this dancing by Mr. Parker is actually a diversion for something altogether different? I'm very new to the industry, but I've been around business long enough to know things are seldom what they seem.

Mind you, I've no idea what it's a diversion for, but it all seems a little too simple to me. DL is having its troubles, suddenly out of the blue comes US Airways, saying: "Oh BTW, we want to buy you". The whole thing has kind of an ad hoc feeling to it, at least to these inexperienced eyes.

 

[General Lee]

Question for everyone: is it possible that all this dancing by Mr. Parker is actually a diversion for something altogether different? I'm very new to the industry, but I've been around business long enough to know things are seldom what they seem.

Mind you, I've no idea what it's a diversion for, but it all seems a little too simple to me. DL is having its troubles, suddenly out of the blue comes US Airways, saying: "Oh BTW, we want to buy you". The whole thing has kind of an ad hoc feeling to it, at least to these inexperienced eyes.

Parker is scared. He has seen the future and realized that his airline will not be a major player. He decided then to become proactive and try to get something on the cheap. He believes trying to buy a company while in BK would be best, since he could try to change contracts with employees, vendors, etc. He had two airlines to chose from in BK currently, DAL and NWA. Had he chosen NWA, he would have gone for the airline with hubs not close to his own, and airplanes closer in type (A320/19s, A330s, 757s) to his own also. The DOJ would have probably given less scrutiny in that proposed merger, since there would have been less overlap involved. But, instead he went after the one in BK that was his competition. DAL has hubs close to his (many close calls--on West Coast--PHX/LAS/SLC---in the SE--ATL and CLT are 220 miles apart---and in the NE--Besides the Shuttles, the BOS hubs, the European Flying from PHL and JFK, the LGA and DCA competition. Our employee groups are vastly different than his, and NWA's would have been easier since they all share the same unions. He decided to go after the one that could and will hurt him the most when we actually do come out of BK.

Now Parker has forced our hand. There is a chance now that we may come out alone and then merge with someone, most likely NWA. If that occurs, CAL will be allowed then to merge with UAL, and AA will likely stand on it's own since it is big enough. USAir and Parker will be left all alone, to fend for themselves in a vastly different arena. USAir trys to be a Low Cost Legacy carrier, but unfortunately will probably be eaten alive by both low cost carriers (SW in PHL), and much larger legacies---likely the new DL/NWA and CAL/UAL. AA, the largest airline now, will become #3, and USAir will be a distant 4th, trying to figure out what kind of an airline it is.


Bye Bye--General Lee


Bye Bye--General Lee

 

[Wiskey Driver]

Parker is scared. He has seen the future and realized that his airline will not be a major player. He decided then to become proactive and try to get something on the cheap. He believes trying to buy a company while in BK would be best, since he could try to change contracts with employees, vendors, etc. He had two airlines to chose from in BK currently, DAL and NWA. Had he chosen NWA, he would have gone for the airline with hubs not close to his own, and airplanes closer in type (A320/19s, A330s, 757s) to his own also. The DOJ would have probably given less scrutiny in that proposed merger, since there would have been less overlap involved. But, instead he went after the one in BK that was his competition. DAL has hubs close to his (many close calls--on West Coast--PHX/LAS/SLC---in the SE--ATL and CLT are 220 miles apart---and in the NE--Besides the Shuttles, the BOS hubs, the European Flying from PHL and JFK, the LGA and DCA competition. Our employee groups are vastly different than his, and NWA's would have been easier since they all share the same unions. He decided to go after the one that could and will hurt him the most when we actually do come out of BK.

Now Parker has forced our hand. There is a chance now that we may come out alone and then merge with someone, most likely NWA. If that occurs, CAL will be allowed then to merge with UAL, and AA will likely stand on it's own since it is big enough. USAir and Parker will be left all alone, to fend for themselves in a vastly different arena. USAir trys to be a Low Cost Legacy carrier, but unfortunately will probably be eaten alive by both low cost carriers (SW in PHL), and much larger legacies---likely the new DL/NWA and CAL/UAL. AA, the largest airline now, will become #3, and USAir will be a distant 4th, trying to figure out what kind of an airline it is.


Bye Bye--General Lee


Bye Bye--General Lee

General Lee,

YOU ARE USAIRWAYS BOUGHT AND PAID FOR!! Stop this nonsense of not wanting to be aquired. If you keep this up we won't let you keep the Delta name!!!

WD.

 

[737 Pylt]

General Lee,

YOU ARE USAIRWAYS BOUGHT AND PAID FOR!! Stop this nonsense of not wanting to be aquired. If you keep this up we won't let you keep the Delta name!!!

WD.

Can we at least keep the double breasted suit!?

737

 

[General Lee]

General Lee,

YOU ARE USAIRWAYS BOUGHT AND PAID FOR!! Stop this nonsense of not wanting to be aquired. If you keep this up we won't let you keep the Delta name!!!

WD.

Hillarious! Classic.


Bye Bye--General Lee

 

[737 Pylt]

Hey,

I was watching American Idol tonight and they gave a preview of the Seattle episode. Looking at some of the contestants kinda made me think of you.:laugh: :laugh:

I was watching "cops" and thought of you. How's life in the trailer park in Wisconsin?:laugh: :laugh: :laugh:

737

 

[Doug Parker]

I was watching "cops" and thought of you. How's life in the trailer park in Wisconsin?:laugh: :laugh: :laugh:

737

How's life in the trailer park in Atlanta ???




.

 

[xanderman]

Thanks chuckie. Stop back when you have less time! BTW, how goes that buyout from Air Tran. Better get your resume updated flight attendant einstien/chuck/lawman.

737

Another one! Insult that is...

 

[xanderman]

...

Can we at least keep the double breasted suit!?

737

Now I have to give credit where credit is due. Nice post! No insult! Good on ya...

 

[xanderman]

.

I was watching "cops" and thought of you. How's life in the trailer park in Wisconsin?:laugh: :laugh: :laugh:

737

Oops! I think maybe you dropped the ball here. You were doing so well with one post and all...

 

[737 Pylt]

Oops! I think maybe you dropped the ball here. You were doing so well with one post and all...

Sorry, but 400ahole is none other than chuck yogurt/einstein/lawman/texas jet jock, and about half a dozen other banned user names. He is a troll and should be treated as such!

737

 

[737 Pylt]

How's life in the trailer park in Atlanta ???




.

I don't know I don't live in Atlanta dumbass!
How's mesa life junior f/o?

737

 

[Doug Parker]

I don't know I don't live in Atlanta dumbass!
How's mesa life junior f/o?

737

I don't know - how is Mesa life junior FO 737 Wannabe Delta prick ???




.

 

[737 Pylt]

I don't know - how is Mesa life junior FO 737 Wannabe Delta prick ???




.

------

 

[Doug Parker]

.



Practice Cactus - that's all I have to say




.

 

[737 Pylt]

.



Practice Cactus - that's all I have to say




.

How would you know? That's not mesa's callsign regional retard!

737

 

[Doug Parker]

How would you know? That's not mesa's callsign regional retard!

737

Sorry - but based on your profile with the Junkstreams - it appears you are the regional retard...............







.

 

[737 Pylt]

Sorry - but based on your profile with the Junkstreams - it appears you are the regional retard...............







.

Thanks, I spent 6 years at the regionals, while you were still itching your daddy's shorts, I was out trying to get hired by the majors. I see you are still at the regionals. Why don't you PM me your information, and I'll see if I can get you a job!

737

 

[General Lee]

.



Practice Cactus - that's all I have to say




.

Have the USAir or East guys started saying that yet? I bet they can't wait....And my pal Oberstar disagrees with you. You should tell him he's wrong.


Bye Bye--General Lee

 

[PHXFLYR]

I was watching "cops" and thought of you. How's life in the trailer park in Wisconsin?:laugh: :laugh: :laugh:

737

Can't be any worse than life in your's..........


PHXFLYR

 

[400ADude]

Can't be any worse than life in your's..........


PHXFLYR

:laugh: :laugh: