I imagine everyone has seen the Bloomberg article that says Dan the Destroyer is on his way out and we will likely file chapter 11 first quarter 2020. My question is what happens to workers? We lose our pension? Layoffs? Will our contract be void?
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I cant imagine anyone will want to purchase frontier markets and have a union contract anchor around their neck making it extremely difficult to drive a profit in 2nd tier markets. These markets will need upgrades to provide the required service, and a union will make it difficult to attract investors.
Does anyone really think Frontier can stay together for two or three years with the amount of customers are losing every quarter?
You can bet there will be a mass exodus in the coming year. Those who are close to retirement are going to get while the getting is good.
I agree with the other posters... in the short term, the bills are paid. It is the investors who want restructuring, not the creditors.
2020 will be interesting, regardless.
Maybe Bloomberg reporter will post on this …...Bond holders and Creditors and the employees last in line....That much debt with junk bond interest rates and revenue going down the toilet , everyone will feel the pain.....All the union contracts will be used for wall paper...
RI have looked at this a lot, and the contracts can be, not will be voided. And health could be changed. And like the one gentleman said, his company is working through it with contract in place. It will be up to the judge. Don't just look at thebpbgc info, look up bankruptcy examples past and present. What I have found is that 1. The judges mandate is to preserve a company coming out the other side chapter 11 not to make sure Union contracts are preserved, that does not mean it is not considered, but it is not the priority. And one source stated as high as 85% of contracts were voided or altered through chapter 11 bankruptcy, not sure if I buy that but I do believe it is high. Another source stated that many corps use chapter 11 to stream line their organization by get rid of unwanted or need burdens. I.e. Unions for one thing. The sites I used were pbgc and Erasa and a few bankruptcy firms sites and business analysts pages that led me to actual historical case files. Worldcom, Enron, and many smaller corporate bankruptcies.
The lump sum option of the pension will be frozen. Annuity is still ok. Union contracts are NOT voided. If the company can convince the bankruptcy court that workers wages or benefits (to name a couple items) are putting a huge burden on the company the court could order the union and company to go back to the table. The company that I work for is currently in Chapter 11 and our contract hasn’t changed. We haven’t even heard rumors that the company wanted to do something about our wages or benefits. Now if your non-union or salary then all bets are off on your wages. The company could come in and say that they are going to pay minimum wage and not a thing can be done about it.
You just don't get paid off. The bankruptcy courts will still order then to pay employees on file
Even with the sale, it does nothing to the 16 Billion Dollars owed!
LISTEN, all Frontier Union Employees have big decisions to make. Do you hold on another 1-3 years before BK or do you cut your losses now and get another Union job with a pension?
Interesting way to look at things is if Frontier files BK, then they can afford the current workforce and it’s union contract subsidies.
1)Dan will be gone after a major restructuring, aka management lay offs.
2)with that sale of washington state, oregon, Idaho and Montana they will have cash to pay their bills till 2022. A bankruptcy judge wont let them file chapter 11 until they cant pay their bills.
3)when they do file chapter 11, a new contract would have to be negotiated by the union and then voted on by the members. Most likely the pension fund will be frozen with no more contributions.
Get that OT while you can, that might help speed up the swirl.
Personally don't care anymore and tired of stressing over it, nothing I can do about it other than ride it out. Soon it will be time to start from scratch again.
Dan Dan The Garbage Man is laughing all the way to the bank with his framed University of Phoenix degree in hand
Off course contract will be void that is all part of bankruptcy
www.pbgc.gov will answer your pension questions.