Originally Posted by
slowplay
DAL doesn't.
TPG owned and had a controlling 53% of Midwest. NWA, which became a Delta subsidiary with the merger, owned 47% of Midwest, but was restricted from operational contraol. That 47% stake was written off prior to the sale to RAH. The terms of the TPG deal required TPG to be made whole prior to any return for NWA. TPG sold 100% of the equity to RAH. As of July 31, NWA, now DAL owns none of Midwest.
Midwest places their code on Delta flights. Delta code is not placed on Midwest flights.
While the situation stinks for Midwest, it has and had nothing to do with Delta.
I disagree.
If you have ever owned a stock or bond that hits financial trouble you would know that you own your shares until bankruptcy. Midwest never declared bankruptcy. Delta can take "tax" write-offs, but unless you sell or give the shares to someone you still own 47%.
TPG as a private company has started 5-6 private partnership LLC... TPG Midwest Gen Par LLC, TPG Midwest Partners V LLC, TPG Midwest USA LLC, TPG Midwest Internatioonal LLC, ...
Everyone talks like Republic bought Midwest. But if you read the Republic - TPG deal it is a "Merger" not a purchase. TPG Midwest and Republic merged companies with the TPG owners getting a board sit at Republic.
It's all in the fine print
The TPG/NWA/Delta/Republic deal has been hidden behind closed doors because the majority owner is a privately held company. I think the truth of the TPG/NWA purchase is still untold.