AMR Files For Bankruptcy
11-29-2011, 06:38 AM
#102
Gets Weekends Off
Joined APC: Jan 2008
Position: 747
Posts: 731
Originally Posted by forgot to bid
Hate to tell ya but Rush is in a union. AFTRA which is AFL-CIO. Many of us who are AFL-CIO don't like the AFL-CIO politics. It makes a mess of our objective to seem less SEIU and more like the NFL or NBA union that are never called into question when they negotiate. They're seen as equals.
The more important thing right now is in ever article and news headlines is what AMR is saying as not been rebuffed. The pilots, and pilots in general, are taking a pounding.
The more important thing right now is in ever article and news headlines is what AMR is saying as not been rebuffed. The pilots, and pilots in general, are taking a pounding.
11-29-2011, 06:38 AM
#103
Gets Weekends Off
Joined APC: May 2006
Position: MD80
Posts: 394
Originally Posted by tsquare
It's not a pre-packaged BK either (according to CNBC). This doesn't bode well for the creditors I wouldn't think. Sounds like there is none of the DIP financing either that the rest of us had. Anybody got any ideas how this will affect things?
The Company has approximately $4.1 billion in unrestricted cash and short-term investments. This cash, as well as cash generated from operations, is anticipated to be more than sufficient to assure that its vendors, suppliers and other business partners will be paid timely and in full for goods and services provided during the Chapter 11 process in accordance with customary terms. Because of the Company's current cash position, the need for debtor-in-possession financing is neither considered necessary nor anticipated.
11-29-2011, 06:40 AM
#107
Gets Weekends Off
Joined APC: Sep 2006
Position: In the Purple Haze
Posts: 321
Originally Posted by Wasatch Phantom
While not unexpected, my heart goes out to all AA employees, and specifically the pilots.
Those of you that seem to be celebrating AMR's bankruptcy filing should be ashamed of yourselves. If you feel like gloating at least keep it to yourself.
If you haven't been through an airline bankruptcy you don't appreciate the impact on lives and careers. Yes, payrates and workrules get decimated, but retirements are severely changed, divorce rates go up and sadly, so do suicides.
Those of you that seem to be celebrating AMR's bankruptcy filing should be ashamed of yourselves. If you feel like gloating at least keep it to yourself.
If you haven't been through an airline bankruptcy you don't appreciate the impact on lives and careers. Yes, payrates and workrules get decimated, but retirements are severely changed, divorce rates go up and sadly, so do suicides.
11-29-2011, 06:41 AM
#108
Gets Weekends Off
Joined APC: Jan 2011
Posts: 713
Originally Posted by olympic
Says Rush Limbaugh .. blame the workers and unions for EVERYTHING
PRIVATIZE PROFITS .. SOCIALIZE LOSSES .. welcome to corporate america, they just love to screw us.
PRIVATIZE PROFITS .. SOCIALIZE LOSSES .. welcome to corporate america, they just love to screw us.
Do you see me blaming the unions or employees??? I have several life long friends that work there, some of whom I'll be seeing at my daughter's birthday party this weekend, one neighbor who is a long time 767 Captain with whom I'm going to lunch. I blame the complete and utter lack of vision and MISmanagement by those who have a fiduciary responsibility to the well being of the company as a whole. The labor groups did their part a few years ago, unfortunately for all involved, the company was completely mismanaged. If you think that all companies purposefully seek to run roughshod over their labor groups (unionized or not), you are sorely mistaken.
11-29-2011, 06:42 AM
#109
Works Every Weekend
Joined APC: Dec 2007
Position: 737 ATL
Posts: 3,506
Originally Posted by EXTW
The question that has not been asked is "What changes were made to the bankruptcy laws several years ago?" Changes where scheduled to go into effect and Northwest and Delta filed just prior to that happening to get in under the wire as I recall, however my memory is getting old and fuzzy, not unlike my ears.
EXTW
EXTW
Originally Posted by N9373M
IIRC the BK laws affected were for chapters 7 and 13 - personal filers. The credit card lobby wanted to make it harder to file 7 (clean slate) vs 13 (partial repayment).
Delta and NWA filed just before the new law took effect in order to avoid that law.
The biggest change was to reduce the amount of time the DIP (debtor in possession) can maintain control of the company. The creditors now have much more power to file alternative plans of reorganization (including a plan to liquidate or sell assets)
Current management has less time to maintain control.
Also, not as many bill payments can be postponed. Vendors can demand payment. That eats cash.
Although most of what has been written about the 2005 act was regarding consumers, the new law also made business reorganizations (chapter 11) more difficult and costly. For example, (1) the court used to be able to extend leases indefinitely, but now leases can only be continued past 7 months with the consent of the lessor, (2) competing reorganization plans can be submitted earlier, (3) utility companies may demand a deposit or other credit enhancement in order to continue service, (4) vendors have improved rights to reclaim goods already delivered, or to demand priority payment, (5) employees have higher priority claims to at least some part of their wages.
Here's a good explanation of Chapter 11 :
http://www.uscourts.gov/FederalCourt...Chapter11.aspx
11-29-2011, 06:42 AM
#110
AAmerican Way for AA Pay
Joined APC: Oct 2005
Position: B-737 Pilot
Posts: 1,617
US will definately be more than an interested bystander. I agree with X-Rated, AMR didn't burn thru cash to feed the fire, so DIP may not be necessary.
ALPA's Moak is a fan of outsourcing? YGBSM. I don't believe it.
ALPA's Moak is a fan of outsourcing? YGBSM. I don't believe it.
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