Objection to Delta's DIP financing for Pinnacle

[mesaba13]

If the Colgan operation is sold and they take pilots, which pilots do they take? IE what if a Colgan Pilot wants to stay in the Pinnacle operation how do they work that part out?

 

[mesaba13]

I answered my own question.

"to any transaction described in paragraph D.1., above, (a “successorship
transaction”) unless the successor agrees in writing,
as an irrevocable condition of the successorship transaction, to
assume and be bound by the Agreement, to recognize the Association
as the representative of the Pilots and to emloy, in accordance
with the provisions of the Agreement, those Pilots on the
Pilots’ System Seniority List who are employed by the relevant
Airline or Airlines at the time of the closing of the successorship
transaction."

Its sounds like as of now those pilots can come back to Pinnacle for up to three years later as vacancies come up. (Unless the 1113 process voids this part of the contract) I could see 9E pleading the case that this provision would cause too much training expense and that the affected pilots still have jobs at Colgan.

 

[ImbracableCrunk]

Quick summary of filing borrowed from elsewhere...

Delta forces Pinnacle into bankruptcy sooner by not paying them about $35 million that Delta owed them.

Wasn't it $35M that NWA missed paying to XJ last time they played this game?

 

[bri5150]

Wasn't it $35M that NWA missed paying to XJ last time they played this game?

Not sure if it matters, but at least they were in bankruptcy.

 

[WMUSIGPI]

I am pretty sure NWA "missed" a $19mil regular payment.