Guest tbaylx Posted April 8, 2003 Share Posted April 8, 2003 Got some information this afternoon that Milton is departing, either by choice or by force..anyone heard if this is true or just rumour? Link to comment Share on other sites More sharing options...
Guest av8tr Posted April 8, 2003 Share Posted April 8, 2003 New Chairman of the Board but no news on Milton. Link to comment Share on other sites More sharing options...
Guest Max Continuous Posted April 8, 2003 Share Posted April 8, 2003 Dagger, can you pick up the Bat-phone and call the Commissioner on this one? Thanks! Link to comment Share on other sites More sharing options...
dagger Posted April 8, 2003 Share Posted April 8, 2003 As of five minutes ago, there was no word of that around AC headquarters. By coincidence, I was just talking with a source about the CCAA.. Milton agreed to GE Capital's terms that included him staying along with senior management. So did the board. The government has no say. Beware of rumors. The stock is being played by speculators. Day traders thrive on rumors. They also make them up. Link to comment Share on other sites More sharing options...
Guest chiselcharter Posted April 8, 2003 Share Posted April 8, 2003 Hypothetically, with Milton gone the GE group pulls it's financing. Should this happen, (or for any other reason AC fails) what prevents a 'Gerry Schartz' type from entering, picking up the pieces and continuing on? Since the company liquidated, could the new owner appoint Milton et al to run the new company? There would be an obvious need for pilots, and obviously some unemployed AC pilots qualified on type, would there be any contract ramifications should the lot or a good portion be hired? If the contract doesn't stand, would this not be a simple way for Milton to bust the union? Link to comment Share on other sites More sharing options...
dagger Posted April 8, 2003 Share Posted April 8, 2003 You have asked questions that fly off in different directions, no pun intended. The fact is that GE signed an agreement to provide DIP financing. It insisted that Milton and his senior officers be retained as part of that agreement. I am not at all certain that GE can just walk away from the agreement unless there are breaches by AC. GECAS wants to protect its own interests in AC which are considerable. So I don't see this as a hypothesis worth discussion further right now. Ditto the other scenarios. The fact is, in a liquidation, someone like Schwartz would have to acquire the necessary operating certificate for a larger international airline. The more AC assets it buys, the more it might be construed that this is a continuing operation and that union successor rights should be maintained. But I don't think we have gone far enough down the path in one week to see an Onex Air or other scenario taking shape. Link to comment Share on other sites More sharing options...
Guest chiselcharter Posted April 8, 2003 Share Posted April 8, 2003 Didn't mean to complicate the question. I quess my drift was, using the conspiracy theory. If Milton conspired to put the company into CCAA, then what would prevent a liquidation conspiracy? Miltons folds it, a 'Schwartz type' picks up the parts as planned. Collenette provides an OC. Milton rehired as per his conspiracy plan. The AC pilots are hired with a 40-50% wage reduction and no contract. And everyone else is given contact numbers such as Global, GTAA and similar outfits that are hiring to sub contract AC needs. After all sleazy politics are part of the Canadian way. Link to comment Share on other sites More sharing options...
Guest GDR Posted April 8, 2003 Share Posted April 8, 2003 And after all that Milton wouldn't get more than 15 years, with probably early parole for good behaviour. Link to comment Share on other sites More sharing options...
Seeker Posted April 8, 2003 Share Posted April 8, 2003 OK, but which one these guys shot JFK? Link to comment Share on other sites More sharing options...
Guest chiselcharter Posted April 8, 2003 Share Posted April 8, 2003 Then again Onex wasn't planned, and after all that Milton couldn't wait to buy Canadian. But I suppose you are right, Calin is going to make the best deal possible for his family of employees. Link to comment Share on other sites More sharing options...
Guest GDR Posted April 9, 2003 Share Posted April 9, 2003 Calin is going to get the labour in this company just as cheaply as he possibly can, in the exact same way that he is going to give the bond holders as little as possible for their investment and the same goes for the other holders of AC's debt. This is not a nice process, but suggesting that it is a plot is a little much. The individual that will take the greatest hit financially is Milton. Between 1999 and 2001 he had acquired over 1.3 million options on AC stock. I don't know how many he had before that. They are now worthless. Link to comment Share on other sites More sharing options...
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