Guest O. Ring Posted April 3, 2003 Share Posted April 3, 2003 According to this article union contracts would remain intact under CCAA. They could be opened by mutual aggreement between co. and union. I guess my question is how much input do the creditors have at this point? I mean if they are unhappy with the labour portion of the restructure can they petition for bankruptcy? Link to comment Share on other sites More sharing options...
dagger Posted April 3, 2003 Share Posted April 3, 2003 If they vote against a proposal for restructuring, yes. Link to comment Share on other sites More sharing options...
Guest O. Ring Posted April 3, 2003 Share Posted April 3, 2003 Sorry try this. http://www.cbc.ca/news/aircanada/bankruptcy.html Link to comment Share on other sites More sharing options...
Guest neo Posted April 3, 2003 Share Posted April 3, 2003 I undertand our union has actually, now that we're in it, retained someone to tell them what bankruptcy entails. Seems to me like we should have had that figured out before we let things go this way. Yes, absolutely our contracts remain. And they're not worth the paper they're printed on anymore. That's because the creditors call the shots now. They will tell you what they're willing to consider: your choice is between what they will pay or them pulling the plug, cashing in what's left of their equity, and walking away. It's not negotiating a concession anymore: it's negotiating to even have a job. neo Link to comment Share on other sites More sharing options...
Guest Max Continuous Posted April 3, 2003 Share Posted April 3, 2003 Doesn't the creditors debenture issue,low bid bath yesterday of .22 on the dollar, not give the creditors a greater incentive to NOT vote against restructuring? With everything leased AC's got to be worth a lot more alive than dead? Link to comment Share on other sites More sharing options...
dagger Posted April 3, 2003 Share Posted April 3, 2003 In a conversion of debt to equity, they give up their secured or protected status. So they would only do that if they felt reasonably comfortable with the airline's prospects for making reasonable profits. Air Canada as constituted cannot make reasonable or sustainable profits. It never has made three or four years in a row of decent margins. As soon as there is a profitable year, a union is lining up for a wage increase equal to or greater than the entire profit. So if the labor piece isn't changed, I cannot see a debt swap plan that the creditors would approve. Is Air Canada worth more alive than dead? Yes, but only as a profitable business. Of course a really shrewd operator might be able to take over the airline much as is, labor agreements intact, and stripmine the assets: sell everything off, pay himself special dividends, and then liquidate the operation a year or two later. Call me cynical, but it happens all the time in business. Link to comment Share on other sites More sharing options...
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