Originally posted by Mikey:
I'm not sure I made myself clear. Hey - I knew I was taking a risk investing in TWA. And I am not complaining about losing the money, per se. It's not even very much money.
What I think smells foul is that:
1. TWA rejected a buyout offer a couple or three months ago, and
2. TWA has instead implemented this plan which involves bankruptcy.
"Hey American Airlines, if we go bankrupt we can blow off all our investors, blow off some debt, and who knows what else. Then you buy us - OK? "
Mikey -- I most certainly sympathize with your frustration, but IMHO I am afraid you are missing the very important point here. The bankruptcy route appears to be the only way to get rid of the Karabu agreement, which otherwise would keep sucking blood from TWA into Icahn's pockets until 2003. Refinancing from GE/Boeing would not have solved that problem, and neither would the buyout without bankruptcy. Extending the agony without any chances for permanent recovery would not have done any good for shareholders as well.