Originally Posted by
TransWorld
This is spot on. The debtors and the company are pretty much those in charge, to work it out amongst themselves. The judge just basically sits back and lets it happen, only getting involved like a football referee does. If someone commits roughing the passer, the judge will get involved.
Yes. But what's significant is that the laws have changed since the last round of airline BK's.
BK is now less palatable for routine business purposes of escaping inconvenient obligations. The creditors are now more in control, as opposed to the DIP (the management team).
The good news with that (for labor) is it's riskier for management to file BK, they might lose the whole enchilada and their jobs and stock.
Bad news is that if they do file, it's easier for creditors to force liquidation if they think that will get them the most pennies on their dollar.
Good news, right now, is that airline assets are worth about their weight in crushed beer cans, so creditors might be more inclined to let the company re-organize and hope for a better return down the road, vice cash out while they'd be hard-pressed to give away the assets.