Tradewinds pulls out of China--A300 layoffs

[Vsf]

Rumor is that Tradewinds has just quit its China A300 ops and that substantial layoffs have hit the A300 side of the company. Anybody know if this true?

(This comes on the heels of the entire 747 fleet being shut down.)

 

[heilhaavir]

Here's some interesting background info:

http://www.detnews.com/apps/pbcs.dll/article?AID=/20080607/METRO/806070336/1409/METRO

 

[Draginass]

Seems to be that the standard operating model of US business executives is to keep the company going while they stuff their own bank accounts with company and employee compensation and retirement assets . . . . oh, and not pay any creditors, either.

Hmmm. Wonder if that could be happening here?

 

[G-force]

Chapter 11 Yet?

Is this place in chapter 11.or are they DONE??

 

[B747FR8DAWG]

Press ReleaseSource: Watkins Aviation, LLC


Watkins Fights for Control of Cargo Airline

Thursday June 19, 1:21 pm ET

BIRMINGHAM, Ala., June 19 /PRNewswire/ --

Birmingham businessman Donald V. Watkins is engaged in a bitter fight for control of TradeWinds Airlines, Inc., a North Carolina-based cargo aviation company he acquired earlier this year. Watkins, whose aviation acquisition company owns 77 percent of TradeWinds, is the company's chairman.


The Retirement Systems of the City of Detroit and Watkins are the principal investors in the company.

TradeWinds operates a fleet of A300-B4F freighter aircraft for domestic and foreign customers. The company also conducts international and domestic on-demand cargo charter operations.

The fight for control of TradeWinds became public earlier this month in Detroit when Watkins appeared before the City's two pension boards to discuss the company's downsized operations and capital needs in the face of rising fuel prices and increasing capital and maintenance expenses. The two boards openly questioned Watkins' financial commitment to the company.

Watkins pointed out that he had made and reported the required capital contribution to TradeWinds, and that it was approved by the pension boards' designated financial advisor. Watkins further noted that he had met or exceeded all financial obligations imposed upon him by the pension boards' investment agreement.

The pension boards later claimed that TradeWinds had failed to make a required interest payment on its loan. In fact, the boards had failed to notify TradeWinds of the floating rate interest payment amount as they were required to do until well after the financial dispute erupted during the June 4 and 5 pension board meetings. Even then, the boards seized control of Watkins' stock in TradeWinds, using a stock pledge agreement, before the company's first interest payment was due.

Watkins has proposed to buyout the pension boards' loan note and equity position in TradeWinds, but the boards have not responded to his buyout offer. "The matter may have to be settled through other means," said Watkins.

"We are in a bad business marriage with an incompatible business partner," said Watkins. "We are working hard to get the pension boards out of TradeWinds."

Watkins firmly believes that the negative political environment surrounding embattled Detroit Mayor Kwame Kilpatrick has spilled over to his TradeWinds transaction with the pension boards. "It is virtually impossible to do business with them in such a politically-charged and hostile environment," said Watkins.


Source: Watkins Aviation, LLC

 

[Draginass]

Looks to me like a bunch of crooks trying to screw each other.