Originally Posted by US AIRWAYS FAN
If they do come out of Ch 11...I think the unions might regret that they did not work something out when they had the chance.
Anyone on here have experience with cases of Ch 11 (or in this case ch 22
)
What exactly can the judge force or do to the unions. What would happen if the judge were to give what management were to ask. Could the unions go on strike? How would all of this work?
Does US Airways need a new investor now? Does this mean Bronner loses all of his stock in US Airways?
1. The Debtors can seek a temporary abrogation of sections of the labor contracts if it can prove that such a move is in the best interests of the estate. In the UAL bankruptcy case, the company sought and obtained such relief from the IAM, in the form of a court-imposed pay cut.
2. The Debtors can also seek a permanent abrogation of the labor contracts, after fulfilling a set of stringent conditions. This is much easier said than done - judges are EXTREMELY hesitant to throw out labor contracts altogether, even when its clear that the contract is out of touch with reality.
3. US will likely need new investors going forward in order to emerge from bankruptcy. The company is in desparate need of a cash infusion, and as today's release demonstrated, few financiers are currently willing to throw any money into the enterprise.
4. Bronner will almost certainly lose his euqity investment in US Airways should the company emerge from bankruptcy or otherwise liquidate.