Us Air Stock

ILS JNKY

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Trading was haulted on US AIR this moring just 2 hours in to the trading day, the market has put a lot of psi on this stock over the last few days.

They mite be moving to the pink sheets, ie possable to wind up worth less, according to CNBC THIS moring www.cnbc.com:eek:
 
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9rj9

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ARLINGTON, Va. (CBS.MW) -- US Airways Group shares plunged 74 percent Monday after it filed for Chapter 11 bankruptcy protection as it tries to overcome the damaging effects of the Sept. 11 terrorist attacks and the slumping economy.

Shares traded at 65 cents per share on New York Stock Exchange, down $1.80 from a close of $2.45 per share on Friday. The bankruptcy shook the entire airline sector, which sold off sharply as well.
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Did they tell the pilots the stock options thay traded for salary would be worthless ? Does anyone know the details ?
 

chperplt

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The stock should only be worthless if the company halts all operations..

Doesn't matter what the value is today. Once they emerge from the CH 11 and investors get to see how the reorganization will be completed, people will start to buy again.
 

9rj9

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are they buying MCI ?

MCI is in chapter 11 and no ones buying it. Seems the U pilots got shafted.
 

chperplt

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I don't think you can compare US Airways and MCI. Every day, billions more debt is being uncovered at MCI.. Looks like MCI is going to be broken up and sold to many bidders.. Would you buy MCI stock??

A little different, ya think?
 

chperplt

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Looks like the stock came back from it's low of .50 this morning to close at 2.45 this afteroon.
 

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chperplt said:
Looks like the stock came back from it's low of .50 this morning to close at 2.45 this afteroon.
Wrong... trading was halted, the indicators are showing Fridays close of $2.45

The stock was halted at around $0.50

In bankruptcy, shareholders are the LAST people to get paid, usually they get the shaft... The shares will most likely be worthless
 

chperplt

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Well, I may be wrong, but according to the USAIR website, the last trade was made today, 8/12/02 at 4:08pm and closed at 2.45... which yes, is the same as it closed on Friday.. According to the info below, it opened this morning at .50..



U - US AIRWAYS GROUP
Last Price: 2.45 at 16:08 EDT
Change: Unchanged (0.00%)
High: --
Low: --
Open: 0.50
Previous Close: 2.45 on 8/9
Volume: 65,800
30-Day Avg. Volume: 805,000
Shares Outstanding: 68,133,000
Market Cap.: 166,925,850
52-Week High: 18.32
52-Week Low: Not Available
Beta: 1.95
Yield: Nil
P/E Ratio: Not Material
EPS: -36.36
Currency Units: US Dollar
Exchange/Delay: NYSE: 20 minutes


The shares will only be worthless if the company closes. Once they emerge was CH 11, the shares will be of value again. If you think that they will emerge stronger, this is the time to buy the stock.
 
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ARLINGTON, Va. (CBS.MW) -- US Airways Group shares plunged 74 percent before being halted Monday after the company filed for Chapter 11 bankruptcy protection as it tries to overcome the damaging effects of the Sept. 11 terrorist attacks and the slumping economy.

Shares traded at 65 cents per share shortly after 9:30 a.m. on the Pacific Stock Exchange, down $1.80 from a close of $2.45 per share on Friday. The stock was halted on the NYSE.

The bankruptcy shook the entire airline sector, which sold off sharply as well. See full story.

The airline said in a statement it expects all its flights will continue and it has secured commitments for $500 million in debtor-in-possession financing from a group led by Credit Suisse First Boston, Bank of America and Texas Pacific Group.

U.S. Bankruptcy Judge Robert Mayer on Monday approved $75 million of the money to be used to keep the airline operating. The spending of the remaining funds will be considered at a Sept. 26 follow-up hearing before the U.S. Bankruptcy Court for the Eastern District of Virginia.

The airline (U: news, chart, profile) filed its petition in Federal Bankruptcy Court Sunday night, listing $7.81 billion in assets and $7.83 billion in liabilities.

"Ultimately, this effort is about our customers, employees, and the communities we serve, as we seek to fix the airline's finances and return to profitability," said US Airways President and Chief Executive Officer David Siegel. "US Airways will continue to operate while we complete our financial restructuring, and our customers should be confident that we will continue service to the more than 200 communities in our network."

US Airways also said Texas Pacific Group has entered into a memorandum of understanding to provide a $200 million investment in the new equity of the airline on its emergence from bankruptcy, which the company anticipates will be combined with the $1 billion collateralized loan backed by the federal guarantee that has been conditionally approved by the Air Transportation Stabilization Board.

US Airways said it expects its court-supervised restructuring will be accomplished on a "fast-track" basis and has targeted emergence from Chapter 11 in the first quarter of 2003.

The Texas Pacific Group deal could end up owning about 38 percent of the airline when it emerges from bankruptcy.

The company said the effects of the Sept. 11 attacks are at the heart of its financial woes, pointing to the closure of Washington Reagan National Airport, higher security costs, plus the economic recession and the cutback in travel.

Siegel was appointed president CEO of the airline in March 2002, with the task of reversing financial losses of more than $1.5 billion over the previous four reported quarters.

Lehman Bros. analyst Gary Chase said in a note to investors that "it's too early to know the outcome" of the bankruptcy, but he noted that the airline has been able to negotiate favorable terms with its labor unions.

"Our current assumption is that the company will emerge from Chapter 11 smaller, but largely intact and more competitive in relatively short order," Chase said.

Also possible is that parts, or all, of US Airways could be sold in a move that would benefit its competitors.

The bankruptcy took some on Wall Street by surprise, since many had expected an out-of-court restructuring for the company.

EDS (EDS: news, chart, profile), a supplier of information technology services to USAirways, said is exposure to the airline is about $140 million.

The two parties have been in discussion about restructuring their relationship and EDS said it expects the talks to continue.

"EDS also expects to continue to provide services to US Airways post-bankruptcy and to be paid for those services," EDS said. The company said it does not expect the restructuring of the IT services agreement "to be material to its results of operations or financial position."

Shares of EDS fell $1.35 to $34.95.
 

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7:50AM Mesa Air could get hit by US Airways bankruptcy: Merrill (MESA) 6.10: Merrill Lynch says that while it doesn't expect any near-term changes in the US Airways (U)/Mesa relationship, the element of uncertainty caused by U's bankruptcy will put pressure on Mesa's share price. Merrill Lynch also said that it believes that shareholders' equity in U will be entirely wiped out.
 

9rj9

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missed my point

Last Trade
7:22pm · 0.60
Change
-1.85 (-75.51%)
Prev Cls
2.45 Open
Volume
65,800

My point was: what were the details of the pilot give back, my understanding is that pilots gave up 35% of their pay for stock options. The next thing the company goes 11 and drives the stock down 75%. Sounds like thay got shafted.

Of course the stock could come back, but it will be worthless if they go under and have to sell assets to cover debt.
 

Tim47SIP

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Something New?

"The bankruptcy shook the entire airline sector, which sold off sharply as well. See full story. "

The entire airline sector already knew of this impending BK. Talk about a bunch of skidish school kids! Well, I would guess that now would be a good time to invest in some airline stocks and wait a little for U to rebound. As for their pilots union getting shafted, if U pulls this one off, those pilots will get their just reward! U just might be another CO and show that patience is virtue. I certainly hope everything works out for the U employees.
;)
 

mckpickle

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Ah if im correct when you go chapter 11 the common stock is wiped out. IE no longer in existance. I bought some CAL stock back in the early 90's a few weeks before it went under. Bought it at .50 cents/share, it went up to 2.50$ then they filed chap 11 and the common stock was eliminated. The pilots have a bigger problem to worry about. Under chapter 11 their contract becomes NUL AND VOID! When CAL did this i believe they paid capts 3-4 thousand a month and f/o's around 2-3. They can pretty much do whatever they want if i understand it correctly.
 

328dude

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Actually McPickle, the USAirways pilots and flight attendants ratified a new concessionary contract last thursday. It passed with over 76percent in favor of. All that was left was for Duane at ALPA to sign it. He did and 3 hours later, U filed for protection under Chapter 11. The contract states that no further cost reductions will be seeked from the union groups that agreed to this new contract. This new contract is amedable in 2008.

They are protected now from whatever Usair decides to do. We all will continue to be payed as agreed upon and benefits will not cease.
 

ILS JNKY

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pink sheets

well, i would not get involved in this one just yet, they have had trouble for a while now.

I look for the stock to move to the pink sheets, delistied and then down even more. gee what are the chances that they "usair" will have to restate their numbers , are the intial numbers wrong could this be another world com.

I think CEOS that don't do their job well schould be fired, and the share holders need to vote on this

Heck look what happend to the CEO of coke back in December 99, they sent all of us questioner asking what we thought about Mr. Ivester, alot of people must had said the same thing fire him and they did just at holiday time.

Sad to say that this sector ie. transportation has realy taken more than it's far shares of beatings during the last year or so.:eek:
 

mckpickle

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328dude said:
Actually McPickle, the USAirways pilots and flight attendants ratified a new concessionary contract last thursday. It passed with over 76percent in favor of. All that was left was for Duane at ALPA to sign it. He did and 3 hours later, U filed for protection under Chapter 11. The contract states that no further cost reductions will be seeked from the union groups that agreed to this new contract. This new contract is amedable in 2008.

They are protected now from whatever Usair decides to do. We all will continue to be payed as agreed upon and benefits will not cease.
I really hope your right Im just stating that this EXACT same thing happened with Cal and the Lorenzo boys a long time ago, and its my understanding that ANY agreement, contract whatever is null and void under a bankrupcy. CAL agreed to the wage cuts then as well and a week or two later chap 11 and no more paychecks.
 

9rj9

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Basically....

the top 76% agreed to get rid of the bottom 24 %, gotta love pilots taking care of each other. Oh ya in 2008 they get a new contract, sounds like Eagle's. Freaking sell outs.
 

328dude

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That 24 percent were actually the most senior half of the pilot group that had the most to lose. My father retired from CAL last year after 31 years there. I love to hear the storys of the Lorenzo days, (what a prick) but from what he told me, U actaully gave the union groups a chance to protect themselves, were CAL did not.

All this is smoke and glass, what do I know, I'm just a lowely prop pusher.
 

SDF2BUF2MCO

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For the benefit of the uneducated, does anyone know can a company like USAir(ways) declare bankruptcy and close shop and reopen as a new company? I could sadly see a company wanting to wipe the slate clean and start all over again. This is kind of what Lorenzo did with CAL, etc. but he kept the CAL name. Don't know if there are any laws out there that would prevent such a thing.
 
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