Will JAG come through the last minute?

 
Old Feb 28, 01, 5:55 am
  #1  
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Will JAG come through the last minute?

Time to put on that Superman cape and step up to plate! Will they be the saviors? At this point all I care about is who's going to pick up the pieces, and whoever it is, they treat us as TWA has/had treated us frequent flyers and honor what current miles we had with TWA. This whole situation has gotten old. Anyways... More news forwarded from AIRWISE:

Feb 28, 2001

A second bidder for bankrupt US carrier Trans World Airlines could emerge at the eleventh hour, according to a newspaper report.

With the deadline for bids closing at 3pm CST today a USD$1 billion challenge may come from the little known Jet Acquisitions Group, says a report in Portland newspaper The Oregonian.

TWA spokeswoman Julia Bishop-Cross said the only contender is still American Airlines and that Jet Acquisitions had yet to submit a formal bid. However, a spokesman for Jet Acquisitions said the company would be filing a bid.

TWA has not received any requests for records from potential bidders other than American, including Jet Acquisitions Group. It would be unlikely that a firm would submit a bid without looking at the carrier's records, airline officials said.

Leading industry analysts and American Airlines have dimissed the potential bid as unrealistic. If it did go ahead the battle could be between Donald R. Moody, who owns the investor company and is virtually unknown in public, and one of America's airline giants.

TWA, one of the best-known names in aviation, filed for bankruptcy protection on January 10. American Airlines had agreed to buy most of the company's assets and keep most of its 20,000 employees.

Jet Acquisitions Group was formed in Scottsdale, Arizona on February 6, state records show. The company has failed to call any news conference on the deal and Moody, 56, has been media-shy as well.

"We don't want press. I never wanted press to start with," Moody told The Oregonian. "I can only tell you that we're working through the deal and I don't want a lot of information out until the deal is finished."


JohnnyUSMC is offline  
Old Feb 28, 01, 11:19 am
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Hmmm...what are the chances of this bid winning out over AA?
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Old Feb 28, 01, 3:29 pm
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I guess this Press Release is real???
http://www.airliners.net/discussions...d.main/403154/
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Old Feb 28, 01, 6:38 pm
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Originally posted by tomindc:
I guess this Press Release is real???
http://www.airliners.net/discussions...d.main/403154/
Yes, it is real.

B747-437B is offline  
Old Feb 28, 01, 7:02 pm
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well, what is the offer?
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Old Mar 1, 01, 5:51 am
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OK, here it is directly from TWA... Those who submitted the bids and the amounts and what they are bidding for are below in TWA's Press Release.

PRESS RELEASE

THREE BIDS FOR TWA ASSETS ARE RECEIVED

(St. Louis, MO) – February 28, 2001 – Three companies have submitted bids for assets of Trans World Airlines. Under the asset sale rules established by the United States Bankruptcy Court, bidders were required to:

Submit bids by 4:00 p.m. EST today.
Bid on substantially all of the assets of TWA, on the assets excluding TWA’s interest in the Worldspan computer reservations system, or on the Worldspan interest only.
Deposit in escrow earnest money in the amount of $50 million if bidding on the assets or 10 percent of the bid price if bidding on the Worldspan stake only.
The bidders and a summary of their bids are as follows:

· AMR Corporation (American Airlines) bid $500 million plus assumption of liabilities for substantially all of the assets (with $300 million designated for the non-Worldspan assets and $200 million designated for Worldspan). Under the rules of the auction, American was exempt from the cash deposit requirement by virtue of having provided TWA a debtor in possession financing facility of $200 million in January. American plans a news release with more details on its bid this afternoon.

Information will be available on American’s web site at www.amrcorp.com/aa-twa and via the Corporate Communications office at 817/967-1577.

Jet Acquisitions Group of Phoenix, Arizona, bid $889 million plus assumption of liabilities for substantially all of the assets (with $684 million designated for the non-Worldspan assets and $205 million designated for Worldspan). The Jet Acquisitions Group bid was submitted by J. Ralph Atkin, president. The notice address for Jet Acquisitions Group is: Jet Acquisitions Group, Inc., 6991 E. Camelback Rd., Suite B-305, Phoenix, AZ 85251.

Galileo International, L.L.C., bid $220 million for the Worldspan stake only. TWA notes that the terms of the Worldspan partnership agreement require that an acquirer hold an airline operating certificate and not hold an interest in a competing CRS system. To the best of TWA’s knowledge, Galileo does not hold an airline operating certificate, and is a competing CRS system. The notice address on Galileo’s bid is Galileo International, Inc., 9700 West Higgins Road, Rosemount, IL 60018.

TWA expects to confirm receipt of escrow deposits on Thursday morning, March 1. Bidders who have submitted bids and completed the escrow deposits will participate in the asset auction beginning at 10:00 a.m. EST on Monday, March 5, at the offices of Kirkland & Ellis, counsel to TWA, New York. A sale hearing to select the successful bidder or bidders is scheduled for Friday, March 9, at the United States Bankruptcy Court in Wilmington, DE.




[This message has been edited by JohnnyUSMC (edited 03-01-2001).]
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Old Mar 1, 01, 8:26 am
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News on the same matter passed on from AIRWISE:

Mar 1, 2001

Two companies yesterday offered bids to take over the bankrupt Trans World Airlines, and a third company offered a bid to buy part of the business.

A federal bankruptcy judge will decide which bid is the "highest and best" on March 9.

The judge will take into account not only the amount of each bid but also factors such as which bidder can best keep the airline flying and handle its obligations.

American Airlines bid USD$500 million and offered to assume USD$3.5 billion in debt and lease costs. American said it can keep TWA's thousands of workers employed and enhance its own airline operations.

TWA said Jet Acquisitions Group Inc. bid USD$889 million, but Jet Acquisitions declined to provide details of the offer.

Illinois-based Galileo International LLC submitted a USD$220 million bid for TWA's stake in Worldspan, a computer reservation system owned jointly by TWA, Northwest and Delta.

TWA, the longest flying carrier in American commercial aviation, filed for bankruptcy on January 10 after more than a decade without turning an annual profit.

On the same day, American announced it would provide TWA with USD$200 million in debtor-in-possession financing as a precursor to its bid.
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Old Mar 5, 01, 4:54 pm
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Originally posted by B747-437B:
Yes, it is real.
While press release may be real, the offer does not seem to be. TWA Corporate Communications regarding Auction: http://www.planebusiness.com/ubb/For...ML/000972.html
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