Why PinColaba Won't Declare BK til after May
12-19-2011, 01:59 PM
#1
Gets Weekends Off
Thread Starter
Joined APC: Dec 2010
Posts: 977
Why PinColaba Won't Declare BK til after May
People are freaking out about 9E declaring bankruptcy. Whether these rumors are being stoked by penny stock daytraders or company men trying to elicit concessions, there are very sound legal reasons to assume the company will not declare any bankruptcy until May 25th, 2012, or later.
Disclaimer: I am not a lawyer. If you need legal advice, contact a licensed attorney. This is not to be constituted as legal advice.
When a corporation declares Chapter 11 or Chapter 7, the bankruptcy court (and especially the company's creditors) will immediately begin hunting for "avoidable transfers" and "fradulent transfers." The court will review any payments or agreements-to-pay made 90 days or less prior to the BK filing. For payment agreements with former company directors, this time period is extended to 1 year pre-bankruptcy filing.
Any payment agreements or payments made in the 90 day period prior to the BK filing (or 1 year period for former/current directors like Phil Trenary) are considered avoidable transfers. In the eyes of the law, these transfers are construed as giving the beneficiaries unfair priority over other creditors. As such, the judge voids these agreements, and any assets/cash paid will be seized as property of the bankruptcy estate/trustee.
What I'm highlighting here is that, if Pinnacle declares BK before May of next year, Phil's big fat consulting fee arrangement would very likely be considered an avoidable transfer to a former director in the year leading up to a BK filing.
I have a very strong feeling that Pinnacle will not declare BK until a year has passed since Phil's payment arrangement/golden parachute deal was signed. This, of course, assumes that Phil has not performed a Michael Jackson/Bank of America stunt and placed the monies in a Cook Islands Trust, held in the name of a Nevis LLC, held in the name of a Wyoming LLC.
Disclaimer: I am not a lawyer. If you need legal advice, contact a licensed attorney. This is not to be constituted as legal advice.
When a corporation declares Chapter 11 or Chapter 7, the bankruptcy court (and especially the company's creditors) will immediately begin hunting for "avoidable transfers" and "fradulent transfers." The court will review any payments or agreements-to-pay made 90 days or less prior to the BK filing. For payment agreements with former company directors, this time period is extended to 1 year pre-bankruptcy filing.
Any payment agreements or payments made in the 90 day period prior to the BK filing (or 1 year period for former/current directors like Phil Trenary) are considered avoidable transfers. In the eyes of the law, these transfers are construed as giving the beneficiaries unfair priority over other creditors. As such, the judge voids these agreements, and any assets/cash paid will be seized as property of the bankruptcy estate/trustee.
What I'm highlighting here is that, if Pinnacle declares BK before May of next year, Phil's big fat consulting fee arrangement would very likely be considered an avoidable transfer to a former director in the year leading up to a BK filing.
I have a very strong feeling that Pinnacle will not declare BK until a year has passed since Phil's payment arrangement/golden parachute deal was signed. This, of course, assumes that Phil has not performed a Michael Jackson/Bank of America stunt and placed the monies in a Cook Islands Trust, held in the name of a Nevis LLC, held in the name of a Wyoming LLC.
12-19-2011, 02:17 PM
#3
Gets Weekends Off
Joined APC: Mar 2008
Position: Assistant Greens Keeper
Posts: 1,011
Originally Posted by flapshalfspeed
People are freaking out about 9E declaring bankruptcy. Whether these rumors are being stoked by penny stock daytraders or company men trying to elicit concessions, there are very sound legal reasons to assume the company will not declare any bankruptcy until May 25th, 2012, or later.
Disclaimer: I am not a lawyer. If you need legal advice, contact a licensed attorney. This is not to be constituted as legal advice.
When a corporation declares Chapter 11 or Chapter 7, the bankruptcy court (and especially the company's creditors) will immediately begin hunting for "avoidable transfers" and "fradulent transfers." The court will review any payments or agreements-to-pay made 90 days or less prior to the BK filing. For payment agreements with former company directors, this time period is extended to 1 year pre-bankruptcy filing.
Any payment agreements or payments made in the 90 day period prior to the BK filing (or 1 year period for former/current directors like Phil Trenary) are considered avoidable transfers. In the eyes of the law, these transfers are construed as giving the beneficiaries unfair priority over other creditors. As such, the judge voids these agreements, and any assets/cash paid will be seized as property of the bankruptcy estate/trustee.
What I'm highlighting here is that, if Pinnacle declares BK before May of next year, Phil's big fat consulting fee arrangement would very likely be considered an avoidable transfer to a former director in the year leading up to a BK filing.
I have a very strong feeling that Pinnacle will not declare BK until a year has passed since Phil's payment arrangement/golden parachute deal was signed. This, of course, assumes that Phil has not performed a Michael Jackson/Bank of America stunt and placed the monies in a Cook Islands Trust, held in the name of a Nevis LLC, held in the name of a Wyoming LLC.
Disclaimer: I am not a lawyer. If you need legal advice, contact a licensed attorney. This is not to be constituted as legal advice.
When a corporation declares Chapter 11 or Chapter 7, the bankruptcy court (and especially the company's creditors) will immediately begin hunting for "avoidable transfers" and "fradulent transfers." The court will review any payments or agreements-to-pay made 90 days or less prior to the BK filing. For payment agreements with former company directors, this time period is extended to 1 year pre-bankruptcy filing.
Any payment agreements or payments made in the 90 day period prior to the BK filing (or 1 year period for former/current directors like Phil Trenary) are considered avoidable transfers. In the eyes of the law, these transfers are construed as giving the beneficiaries unfair priority over other creditors. As such, the judge voids these agreements, and any assets/cash paid will be seized as property of the bankruptcy estate/trustee.
What I'm highlighting here is that, if Pinnacle declares BK before May of next year, Phil's big fat consulting fee arrangement would very likely be considered an avoidable transfer to a former director in the year leading up to a BK filing.
I have a very strong feeling that Pinnacle will not declare BK until a year has passed since Phil's payment arrangement/golden parachute deal was signed. This, of course, assumes that Phil has not performed a Michael Jackson/Bank of America stunt and placed the monies in a Cook Islands Trust, held in the name of a Nevis LLC, held in the name of a Wyoming LLC.
The stock is at 96 cents and with sell orders being pushed it could spell trouble sooner then May... more like JAN or FEB... well shall see! Who knows.
12-19-2011, 03:57 PM
#4
Gets Weekends Off
Thread Starter
Joined APC: Dec 2010
Posts: 977
Originally Posted by ShyGuy
Wake up, Pinnacle will be declaring bankruptcy sooner than that!
Unless you can point to a significant liability that will push the company's assets v. liabilities into the red, your fearmongering is not backed up by reality.
If you can show me, on paper, the specific projected cash outflows that will equalize Pinnacle's assets and liabilities in the next 90 days, I will consider the merits of your claim. Vice any sort of information leading you to your conclusions, you're no more than a fortune teller who is probably trying to make a buck daytrading the stock.
12-19-2011, 04:11 PM
#5
Gets Weekends Off
Joined APC: Apr 2008
Posts: 910
What does the board and the current team owe PT, DS, et al anyway? If anything, I think they'd be more interested in going after their money due to the fact that they took a big sh*t in the toilet and forgot to flush before they left.
12-19-2011, 04:28 PM
#6
Banned
Joined APC: Apr 2008
Posts: 444
Tea beggars:
Pinnacle Has ‘High Probability’ of Bankruptcy, Maxim Says - Businessweek
Not the have any faith in an analyst...
Pinnacle Has ‘High Probability’ of Bankruptcy, Maxim Says - Businessweek
Not the have any faith in an analyst...
12-19-2011, 04:32 PM
#7
Gets Weekends Off
Joined APC: Aug 2010
Position: Right Seat Spouse
Posts: 452
Originally Posted by B00sted
Tea beggars:
Pinnacle Has ‘High Probability’ of Bankruptcy, Maxim Says - Businessweek
Not the have any faith in an analyst...
Pinnacle Has ‘High Probability’ of Bankruptcy, Maxim Says - Businessweek
Not the have any faith in an analyst...
http://www.commercialappeal.com/news...rs-memphis-be/
Last edited by clearprop; 12-19-2011 at 05:49 PM.
12-19-2011, 05:27 PM
#9
Gets Weekends Off
Joined APC: Apr 2008
Posts: 910
Originally Posted by B00sted
Menke lead Frontier through BK. He will lead 9E through it as well it looks like.
The BOD obviously had this planned out.
The BOD obviously had this planned out.
Its hard to say what sort of result F9 would have had if they'd been left to finish their own restructuring.
12-19-2011, 05:51 PM
#10
Gets Weekends Off
Thread Starter
Joined APC: Dec 2010
Posts: 977
Originally Posted by B00sted
Tea beggars:
Pinnacle Has ‘High Probability’ of Bankruptcy, Maxim Says - Businessweek
Not the have any faith in an analyst...
Pinnacle Has ‘High Probability’ of Bankruptcy, Maxim Says - Businessweek
Not the have any faith in an analyst...
The company is obviously waging a PR campaign to spread fear amongst the pilots and at Daddy Delta. If they can successfully get training and pay concessions from the pilots, and if they can successfully get things squared away with Delta, their "house is burning down" campaign will have paid off.
On another note--do you guys honestly think the consultants they hired to develop BK/liquidity improvement plans are going to finish their work before Xmas, get a bankruptcy filing in, and enter Chapter 11 before New Year's? I highly doubt it--that's a pretty tight timeline, even for a mid-sized company.
My best guess: if they do declare BK, it won't be until March at the earliest, if at all.
At the end of the day, we owe all of this to our collective greed as a society--many of us Americans have shot ourselves in the foot looking out for the guy in the mirror so many times via concessions, voting for candidates based on what's best for us and not the whole country, and buying so much crap we don't need that we force ourselves into working for employers we would've otherwise walked away from years ago.
Either way...good luck to all of us whatever happens...
Thread
Thread Starter
Forum
Replies
Last Post
