Sabena, Belgium suing Swissair

[CR2]

From ATW online

Sabena, Belgium suing Swissair for alleged missteps
Dateline: Tuesday November 27, 2001

Sabena, some of its institutional investors and the government of Belgium said they intend to put forth a series of legal claims against Swissair and Swissair-controlled entities, alleging that Sabena was mismanaged while it was controlled by SAirGroup.

The funds sought collectively amount to about eur2 billion in damages and other costs, according to Minister of Public Enterprises Rik Daems. Belgium and Sabena investors are demanding payment of eur529 million that SAirGroup pledged to Sabena in Jan. 2001 and about eur355 million in damages, Daems said in a statement. Sabena is seeking eur529 million plus eur161.1 million in damages on claims SAirGroup and Swissair failed to honor commitments regarding Sabena's fleet renewal.
Also, Sabena has started legal proceedings against Flightlease to force the leasing subsidiary to take back three A340-300s and pay $17 million in damages. Belgium and the institutional investors in Sabena are filing an additional claim at the commercial court in Brussels for eur370 million in damages against SAirGroup, SAirLines and Guernsey-based SAirInternational Finance III.

[Raas767]

Isn't that kind of like trying to squeeze blood out of a rock?

[jetgirl]

Miss-managed Sabena.....????!!!! Didn't Sabena manage that all by itself for 40 years.SR may not have been brilliant but at least it did regularly make a profit.

[sabenapilot]

Seems people simply can not believe you can actually make a huge profit via a company loosing a lot of money...

Let me explain the mechanism.
1- Try to get hold of only half of the shares. Not less, because then you have not enough influence, but certainly not more eighter, because then the mechanism becomes less attractive. You'll see what I mean once you have read all this.
2- Force this company to sign big, useless and way too expensive contracts with companies you own for 100%. By doing so you are actually draining money from a company you own only half to a company you own completely...
3- Make sure you drain as much as you can, so that at the end of the year the deficit is as big as possible.
4- Now ask for a recapitalisation of the unprofitable company. The co-owners will account for half of this and you will have to reinvest the rest, which is roughly half of the money you have first drained out of this company.
5-The other half is now safely in your own hands.
6- Run the program again the mext year...

:eek: