Originally Posted by
Checkraise
ATSG funds ABX retirement. Dissolving ABX would not require a total payout of retirement. That said, I think this rumor is either complete baloney or a negotiating tactic.
I am not a finance guy so I don’t know for sure, but if ABX management filed bankruptcy wouldn’t that null and void any contracts and relieve ATSG from paying ABX’s retirement. Isn’t this why a lot of companies create parent companies and sub companies to be able to file bankruptcy as a business tactic or not be held liable for lawsuits because they are legally separate companies. It reminds me of when Frank Larenzo filed bankruptcy with Continental Airlines and operated the company with money from the parent company Texas Air Corporation. Bankruptcy has been used by many Aviation companies to get out of contracts and/or aircraft leases.
Like I said I am not a finance guy but if ATSG wanted to get rid of ABX I am sure they could find a way. I doubt that would ever happen though.
Before the negative comments come in I am not management and am not an expert in finance or bankruptcy laws, just expressing an opinion.