Originally Posted by
30west
I agree when they go to the banks for financing soon(5 billion dollars+/-) and explain how the synergies are going to roll in after SOC, the banks then start checking what management said and find out we are miles apart on new contract. This will be a problem, the banks will say UAL management you have 2 choices if you want money, 1) finish the pilot contract 2) your not going to like the interest rate were going to charge you.
Spot on.
Players in the lending/banking world are in the business to mitigate future "Lending vs Risk". In this case, they will not be left to wonder as to what a SOC will look like when the 'full fruits' of promise cannot be delivered as sold by ways of inflated expectations referred to as "Synergies" in such a deal as the New UAL.....They (investors/lenders-banks) need to look no further than the present day merged USAirways as to where this will go without such a JCBA in place to make things matriculate as promised by way of 'future success'.
What NEEDS to be done on Mgt's behalf is pretty clear, and the options are NOT 'plenty' for them to play with.