Originally Posted by
StopBeingWhimps
Its NOT going to be a "merger". Its going to be a bankruptcy acquisition. 363 asset sale under the chapt 11 bankruptcy code. Franke clearly is in FLL to close the deal... under this acquisition Franke can pick which assets he wants to keep or sell. He wants routes/slots, gates, planes. This is very similar to the offer early this year (363 sale) I expect NK to announce a bankruptcy under chapt 11 with an acquisition by F9. Overlapping doesnt mean SQUAT in this type of bankruptcy acquisition. An agreement has clearly been reached with Bill and the Bond Holders... NK operations goes away, will cease operations, but employees such as Pilots, FA's, Mechanics will merge.
So, a review for the ignorant(which seems to be 99% of you) acquisition of some of the assets, merge of the employees. a JCBA will be worked on once deal closes...Unions still have legal grounds under the bankruptcy code.. A judge still would be required to gut the Spirit CBA... my guess is a judge wont touch it knowing a JCBA is around the corner and would prefer to let the company and unions settle it and do their negotiations.
Im guessing Franke wants the NEO's, agreed to sell all the CEO's and other assets and some stock and cash to please the Bond holders(we'll see when merger agreement goes public). Spirit has about 120 NEO's... he will take ownership of those basically overnight. Big growth for the new F9... Thats what's happening here and it sounds like a deal is pretty much done. Franke is 88yrs old, he aint flying across the country to talk about gate space LOL
Bill Franke got his deal after more than a decade... did yall think Bill would just go away and give up?!! LOL.
There won’t be an asset sale to Frontier. Of the 206 airplanes, only 48 of them are owned, the rest are leases. Those leased airplanes will be taken back by the leasing companies and re-leased in Asia at a premium. The 48, many of those don’t have engines and are parked out in Phoenix. Airlines aren’t rushing to buy NEOs that are missing 2 engines. The Hangars in Detroit and Houston will get sold, our HQ and Traning Center will be offered up to Atlas, the Legacies will make a run at FLL Terminal G, and the rest will be carved up and auctioned off by the creditors committee. Spirit is no longer in control of its own destiny.