Update #11
We understand that there is a lot of misinformation out there and wanted to take time and let everyone know where things are at and how they got there. The Bankruptcy Court in Delaware continues to consider PTC’s efforts to sell its business to Black Diamond. PTC conducted an auction on December 16 and 17. Black Diamond was the only party that made an offer for all of PTC’s U.S. assets. There was an auction for the sale of PTC’s stock in its German affiliate, and Black Diamond outbid a German company for that stock.
The sale hearing began on December 17. The USW objected to the sale, arguing that the sale to Black Diamond should not approved until the USW and Black Diamond have negotiated a new labor agreement for the Alliance and Darlington plants. Prior to the start of the auction, the USW reached an agreement with PTC and Black Diamond that postponed any consideration of the union’s objection until additional time has been allowed for bargaining.
PTC and Black Diamond pointed out that they do not intend to close the sale until either there is a new agreement mutually negotiated or PTC obtains bankruptcy court approval under Section 1113 to reject the labor agreements. In the event of a Section 1113 contract rejection motion, the Union will be in court to vigorously fight the motion. The USW is awaiting word from PTC about resuming negotiations. Further, PTC and Black Diamond agreed that in the event that Black Diamond wanted to close the sale without having first negotiated an agreement or obtaining Section 1113 relief, the USW would be given 5 days notice and would have the opportunity to present our case to the bankruptcy court.
The sale hearing has continued since January 1. Other parties, including one of PTC’s lenders, CIT, have objected to the sale. In addition, the failed bidder for the German stock continues to object. Because the bankruptcy judge has been unable to offer consecutive days for the hearing, or even full days, the hearing has been held on several short days. It is possible that the hearing could conclude the week of January 18.
We have met with the company three times and each time they wanted to discuss the number of job classifications and look at any redundancies and/or out dated jobs that did not exist. You will have a voice and vote in this process.
