dragon Posted April 9, 2003 Share Posted April 9, 2003 A lot of experts on the board, with respect to CCAA, especially union v. process. Seems to me a lot of good time is being wasted, as all concerned, particularly Justice Farley, could have just confirmed the open and shut status as is being offered here by the CCAA experts. Also, if anyone thinks the unions will just roll over and pull their pants down, especially with no precedent established, that the creditors are not interested in any cooperation, that they will just pull the pin, well, I don’t see it unfolding all so defiantly as some presume.. Link to comment Share on other sites More sharing options...
dragon Posted April 9, 2003 Author Share Posted April 9, 2003 Another thing with respect to creditors. Does anyone REALLY think that in – this particular case – with so much upside that all kinds of financial heavyweights are lining up behind AC, with so much post-restructure potential, that CIBC, RBC, GE, and all the rest of the stake holders are just going to say &%$@! you bunch of &%$@! &%$@!s, &%$@! you, we are taking our pennies on the dollar, we will take our &%$@! airplanes back, we have lots of better opportunities for our airplanes even if the desert seems to be full? Sure,… very likely. Link to comment Share on other sites More sharing options...
dagger Posted April 9, 2003 Share Posted April 9, 2003 Each creditor class has to vote yes to a plan, so the lessors don't have the only say. Above all, the availablility of money going forward is based on the assumption that the plan will bring forward an Air Canada that can meet its proposed plan. That plan will propose much lower costs. There isn't an ACPA plan or a CAW plan, just the one proposed by management. And not two or three management plans either. One management plan. The creditor classes vote thumbs up or thumbs down. Most creditors don't want to create a non-viable company that will be back in CCAA before they realize a return on their converted debt or lower leases. Moreover, most of Air Canada's Airbus fleet would not end up in the desert. Airbus aircraft have a very high utilization rate. The US companies which have gone through Chapter 11 have not parked their existing Airbus fleets. Link to comment Share on other sites More sharing options...
Guest b52er Posted April 10, 2003 Share Posted April 10, 2003 Remember, the company has to know what the Unions are going to accept as barganing BEFORE they can present their "plan". Therefore, the longer the "plan" takes to formulate, the less the creditors are willing to wait it out. Remember a few weeks ago Dagger, it was I who told each and every member on this board that all it would take would be one, count it, one regulator or group of heavyweight investors/creditors to bring the house of cards tumbling down. According to documents filed in Canada, the pension regulators were the ones, and you said......what WAS that you said in your response? I think it was something similar to...."it doesn't work that way?" Your command of the english language is more influential than your true knowledge. Stay tuned for more.... Link to comment Share on other sites More sharing options...
dragon Posted April 10, 2003 Author Share Posted April 10, 2003 Nobody, and equally, wants to see a liquidation of AC, all involved will play that angle. This is the biggest game of chicken in Canadian Corporate history and I expect it to unfold reflecting that opinion.. Link to comment Share on other sites More sharing options...
Seeker Posted April 10, 2003 Share Posted April 10, 2003 Yep, took a genius to see that coming. Especially since it's been talked about for a year. Link to comment Share on other sites More sharing options...
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