Originally Posted by
Big John
I guess you don’t remember Paul Whiteford and Mike Glawe telling us during C2003, “Don’t let it go to the judge.”
Regardless, once you’re in Chapter 11, management tells the judge what they need and the judge gives it to them. Have the laws changed back to where a bankrupt company goes into receivership or does management still call their own shots?
Management still call their own shots. That’s the danger of Chapter 11. There are no pensions to shed onto the government, so management will get what they want in CH11. Hopefully it never gets there.
There has only been one airline bankruptcy since the bankruptcy law change. It’s now much less management friendly. Ask the then AA management how their bankruptcy worked out for them. Here is a hint: the AA management group lost control of the process and American is now run by the team from Phoenix.