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December 30, 2002
XO Communications CEO Will Resign after
Reorganization
XO Communications Inc. Chairman and Chief Executive Officer Daniel F.
Akerson plans to resign after the phone- and Internet-service provider
emerges from bankruptcy, Bloomberg News reported. Akerson, who has held
XO's top job since September 1999, wants to “pursue other business
interests and spend more time with his family'' the Reston, Va.-based
company said in a press release distributed by Business Wire. He will be
a consultant to XO after the company completes its restructuring,
reported Bloomberg. XO's reorganization plan was approved last month by
a bankruptcy judge and gives financier Carl Icahn control of the
company's future. It needs federal and state regulatory approvals, the
newswire reported. XO sought bankruptcy protection in June.
CyNet Files for Chapter 11 Bankruptcy Protection in
Texas
CyNet Inc., a provider of Internet, voice, and fax messaging software
and services, has filed a voluntary chapter 11 bankruptcy petition,
according to a filing late on Thursday with the Securities and Exchange
Commission, Dow Jones reported. The 8-K filing said the company made its
bankruptcy filing on Dec. 9 with the U.S. Bankruptcy Court in Houston.
U.S. Trustee Richard W. Simmons filed a motion to dismiss CyNet's
bankruptcy proceedings. The trustee said in court papers that the
company's vice president, Samuel C. Beale, signed the bankruptcy
petition as an officer of the corporation and also signed as attorney.
'If Mr. Beale is in fact an attorney, he cannot represent the debtor
corporation because, as an officer of the corporation, he is not
disinterested,' the U.S. Trustee's motion stated, reported the
newswire.
UNITED AIRLINES
United Airlines Files Conditional Request To Reject
CBAs
Dow Jones reported that the parent of United Airlines’ parent, UAL
Corp., filed a court motion on Friday seeking to pave the way for ending
collective bargaining agreements (CBAs) with its unions. The company is
under the gun to make massive cost cuts. United's lenders, which have
provided $1.5 billion in interim financing for the money-losing airline,
said United must cut labor costs by $2.4 billion a year in order to
become a viable business. The deadline for making the cuts is Feb. 15,
reported the newswire. Unions have already agreed to concessions of
about $1 billion, but said they wouldn't go any further until United
unveiled a complete strategy for how it expects to become a profitable
company.
According to the filing obtained by Dow Jones Newswires, the airline
is seeking to cancel pacts with the Air Line Pilots Association, the
Association of Flight Attendants, Districts 141 and 141-M of the
International Association of Machinists and Aerospace Workers, the
Transportation Workers Union and the Professional Airline Flight Control
Association. United said it's also conditionally asking the court to
reject a collective bargaining agreement between Mileage Plus Inc. and
the International Association of Machinists and Aerospace Workers,
reported Dow Jones. Through the motion, United is seeking to invoke
§1113 of the U.S. Bankruptcy Code, which could lead to the
court-supervised renegotiation of contracts with the labor unions.
UAL's Mechanics Among Holdouts as Airline Seeks More Pay
Cuts
United Airlines mechanics and cleaners, the only employee group to
reject pay cuts before the airline filed for bankruptcy, are again among
the holdouts as the company tries to reorganize under court protection,
reported Bloomberg. The airline asked a federal bankruptcy judge on
Friday to order the Machinists to accept temporary pay reductions
similar to those negotiated with four other unions to reach a goal of
$70 million in monthly savings during reorganization efforts. The union
said it will fight the request at a court hearing today. United, which
said it has the highest employee costs in the industry, wants to reduce
labor expenses by $2.4 billion annually. The temporary cuts proposed
“would buy United and its employees an additional 10 weeks to
exhaust every conceivable means by which to address and resolve”
labor contract issues, the company said in a court filing Friday,
reported the newswire.
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