5.19.12 – (LAA) – NY Bankruptcy Court Live Tweets

APFA Live Tweets From Day 3 – NY Bankruptcy Court

This is Leslie Mayo, National Communications Coordinator, with a Bankruptcy Hotline update for May 19, 2012.

Friday was day three of APFA’s day in court to present witnesses and testimony in defense of AA’s efforts to abrogate our contract. Monday, May 21st, TWU is scheduled to finish their portion of the hearing; and on Tuesday, the Company is scheduled to begin with its rebuttal witnesses. If all goes as planned, I hope to be in the courtroom Tuesday morning to continue live-tweeting the proceedings. You can read those tweets by clicking on the link from the front page of www.www.apfa.org beginning Tuesday morning, May 22nd. To follow APFA on Twitter, click here and select FOLLOW.

Please note: The tweets in this Hotline read from the top, down, unlike a normal Twitter feed. Several comments include a link. This is because those tweets were too long to fit the 140-character limit. Please click on the link to read the comment in its entirety.† Also, this is not meant to represent a transcript of the hearing. It is simply a casual summary of the testimony and should not be construed as anything but an unofficial account.

People and Entities involved in Friday’s proceedings:
Carmen Parcelli, APFA Attorney
Leon Szlezinger, Managing Director, The Jefferies Group, UCC/Bankruptcy Advisors to APFA
The Jefferies Group, Investment Banking Firm

Court should begin any minute. Leon Szlezinger is up first for APFA. He’s with the Jefferies Group – APFA’s advisors on the Creditors’ Comm.
APFA (@APFAunity) May 18, 2012

Courtroom is full today. APFA is well represented. TWU is starting to fill the room since they start this afternoon. And lots of AA Sr. Mgt.
APFA (@APFAunity) May 18, 2012

Carmen Parcelli <one of APFA’s Attorney> will be extracting direct testimony from Leon. Judge just came in – court in session.
APFA (@APFAunity) May 18, 2012

Leon is testifying that Jefferies provides special services incl. advisory to special committees, evaluation, restructuring. He is a managing director
APFA (@APFAunity) May 18, 2012

Leon graduated from the U. of Manchester, England in ’97. Joined Pricewaterhouse. Spent 3 years getting a special qualification til ’01.
APFA (@APFAunity) May 18, 2012

(Leon) became a partner in ’99. He has been involved with several Ch. 11 cases. Currently the financial advisor to Eastman Kodak, he handled the Delphi case…
APFA (@APFAunity) May 18, 2012

Enron case advising a bank who financed the company, which involved looking at Enron’s business plans.
APFA (@APFAunity) May 18, 2012

Carmen proffered Leon as an <expert> witness with no objection from the company
APFA (@APFAunity) May 18, 2012

The Jefferies Group first became involved with AA’s bankruptcy mid-December 2011. He was called by APFA and asked if he could work with us.
APFA (@APFAunity) May 18, 2012

Very long – VERY INTERESTING tweet: 7 primary people incl. one managing director. Leon’s role is to lead that team (cont) tl.gd/hfcolp
APFA (@APFAunity) May 18, 2012

Company is worried that Leon’s declaration appears to depend on Akins opinion and Wall Street Analysts’ opinions. Carmen is elaborating. <Leon is excused while courtroom discusses>
APFA (@APFAunity) May 18, 2012

Judge will “split the baby” regarding a piece of the declaration. Obviously what <Leon> does for a living doesn’t not researching and instead taking what others say as fact.
APFA (@APFAunity) May 18, 2012

Typically in any analysis, there’s something called “stress testing” by looking at the assumptions and testing (cont) tl.gd/hfd096
APFA (@APFAunity) May 18, 2012

My experience with other Ch. 11 advising, is that when any client looks to put its resources into one specific deal, we (cont) tl.gd/hfd2nf
APFA (@APFAunity) May 18, 2012

Carmen is finished with direct testimony. AA cross begins
APFA (@APFAunity) May 18, 2012

Here we go with all the questions that are completely unrelated to what he testified to. “Your testimony doesn’t relate to this or that …”
APFA (@APFAunity) May 18, 2012

This attorney is now talking about what they DO have in common. Objection raised. Judge asked Co. counsel not to go on and on…
APFA (@APFAunity) May 18, 2012

Judge has Leon’s declaration and knows what he did and didn’t testify to. <Judge wants to move on>
APFA (@APFAunity) May 18, 2012

AA has found another fast talking att’y although this one isn’t quite as difficult to follow as yesterday’s cross examination of Dan Akins.
APFA (@APFAunity) May 18, 2012

Leon is being challenged by AA’s attorney about whether he researched this, reviewed that, etc…
APFA (@APFAunity) May 18, 2012

Leon reminded him that if he didn’t do his job no matter who he was working for, he would be fired.
APFA (@APFAunity) May 18, 2012

AA Attorney is pointing out very general economics 101 scenarios as reasons you can’t just “adjust AA’s model” of its biz plan.
APFA (@APFAunity) May 18, 2012

Leon pointed out that the attorney’s examples are so broad and basic but do not address due diligence with regard to AA’s biz model and plan
APFA (@APFAunity) May 18, 2012

Company is finished with their cross. Waiting to see if APFA needs to redirect. If not: WE ARE FINISHED! For today.
APFA (@APFAunity) May 18, 2012

Next week, AA will put forth their rebuttal which could include any of their witnesses that have already testified.
APFA (@APFAunity) May 18, 2012

Judge back on the bench. No redirect. Carmen (APFA Attorney) is moving to accept several APFA documents as exhibits.
APFA (@APFAunity) May 18, 2012

Leon was just released from the witness stand. APFA’s case is done.
APFA (@APFAunity) May 18, 2012

Judge wants to move right into TWU’s opening testimony. TWU Attorney would like to cross examine Jeff Brundage. I’ll be stayin for this.
APFA (@APFAunity) May 18, 2012

Brundage still under oath (JB). Company attorney redirecting. Pointing out his new position at AA as a Sr. Advisor. JB says he is pleased that 5 contracts ratified. Maintenance and Stores did not ratify.
APFA (@APFAunity) May 18, 2012

This is redirect, not cross examination. There are common terms in all of the proposals that were ratified (I (cont) tl.gd/hfe67i
APFA (@APFAunity) May 18, 2012

Objection raised by TWU counsel. Judge clarifying that he assumes Brundage offered prior opinions and that’s what the testimony relates to
APFA (@APFAunity) May 18, 2012

Brundage proceeding with testimony. AA agreed with TWU that they would not implement anything until all TWU (cont) tl.gd/hfeckv
APFA (@APFAunity) May 18, 2012

Cross examination by TWU: TWU: You said you didn’t receive counterproposals from the 2 groups? But you meant (cont) tl.gd/hfeii1
APFA (@APFAunity) May 18, 2012

TWU: In the document you are looking at, is this a representation of AA’s compensation of Mechanics’ from (cont) tl.gd/hfen7f
  APFA (@APFAunity) May 18, 2012

TWU: Is it fair to say this is sort of a summary of what AA needed in terms of outsourcing to bridge the gap (cont) tl.gd/hferjs
APFA (@APFAunity) May 18, 2012

Lunch break finally. Company says Brundage has a meeting at 1:30 so can we push through? Asking TWU Counsel whether he’d like to wait
APFA (@APFAunity) May 18, 2012

TWU Counsel chooses to break. We will come back and finish with Brundage after 2:00. Break time!
APFA (@APFAunity) May 18, 2012

TWU I want to apologize. Flights are all full so I have to get to JFK ASAP. Good luck to you guys!!
APFA (@APFAunity) May 18, 2012

Judge has delayed his decision to June 22 from June 6. He says the case is taking a long time and he wants to be thorough obviously.
APFA (@APFAunity) May 18, 2012