CIBC Sabotaged $5,000,000 NASDAQ IPO (1999)
In a nutsehell, in the year 1999, Wall Street Broker Hornblower & Weeks was all set to do a BLTA $5,000,000 NASDAQ IPO. However, at the last minute, 5 days before Closing (when BLTA had no time for an alternative plan), the Clearing Agent for Hornblower, CIBC Oppenheimer giving no logical reason, immorally and illegally, simply refused to process the BLTA IPO, effectively killing the deal.
http://investorshangout.com/post/view?id=4290612
CIBC Pulls Out Financial Rug on BLTA
March 19, 2001
In the wake of a decision by the Canadian Imperial Bank of Commerce (CIBC) to withhold their clearing-house processing for a public offering by New York based Baltia Airlines, ``incredible loss and misery has been left,'' according to Igor Dmitrowsky, Baltia's founder and CEO. Baltia Airlines, Inc. is suing CIBC and its wholly owned subsidiary, CIBC Oppenheimer for damages of $150 million under the Securities Exchange Act and conspiracy under U.S. federal racketeering provisions (RICO). The case will be heard on March 26, at the US Court of Appeals in New York (40 Center Street, Foley Square, United States Courthouse,10:00 A.M.) The US Department of Transportation awarded Baltia Airlines the only non-stop route between St. Petersburg Russia and North America. Flying out of JFK Airport, their five round trip flights per week would take eight hours each way. Baltia, to qualify as a US Air Carrier for this route, proved to the DOT that they were fit, willing and able. Their bid was chosen over eleven other applicants. Baltia's $5 million share offering was approved by the Securities Exchange Commission and listed on the Nasdaq Small Cap Market. Hornblower & Weeks, Inc., a Wall Street brokerage company, and Baltia's underwriter, agreed to acquire all the shares on a firm commitment offering. All the stock was pre-sold by Hornblower to its clients. Five days before the trading was to start, CIBC, Hornblower's clearing house for many years, informed them that would not process any orders relating to Baltia.
Larry Hecker, Vice President and Director of Operations for the small airline, and former Deputy Administrator for the FAA under President Reagan, said, ``Baltia Airlines would have been in operation a long time ago if it wasn't for CIBC.'' ``They didn't even give a reason for their withdrawal, and in my opinion what they did was illegal and immoral,'' he said. Hecker went on to say that, ``CIBC made both a written and oral commitment with Hornblower & Weeks. Then CIBC made their departure at the last minute, with no explanation, no forewarning, no chance to replace them...nothing!'' ``They had more than a year to leave if that was their intention. Obviously there was more to it'', he said. ``I believe in the concept and I believe in Igor,'' he said. ``He is one of the most tenacious, honest and admirable men I have ever known,'' Hecker said. ``Baltia was a good idea when it was conceived, and for many reasons it's even a better idea now.'' Hecker is generally considered by most business persons and government officials associated with the field of aviation to be the one individual responsible for TWA's turnaround from 1993 to 1995.
Bob Volpe, 44, his wife and their two small sons, of Brooklyn New York are ``still reeling'' from CIBC's ``derailment'' of Baltia's public offering. ``We were so proud to be a part of this exciting opportunity and it ended up costing us most of our life's savings and our pension fund. The news that CIBC had backed out of their commitment was devastating to us.'' Volpe is still listed as the Director of Technical Operations for Baltia Airlines in the company's prospectus and claims he would ``go back in a minute if they get their financing together.'' He took another job in the computer field after the public offering was ``slammed shut'' by CIBC. In 1998 Volpe took the job with Baltia because he ``was so impressed and confident with the team, their talent and their terrific plans.'' ``I wanted to have the chance to show what airline mechanics are all about and to go far beyond, even the strictest guidelines of the FAA. It was the opportunity of a lifetime I dreamed about,'' he said. ``Igor is very intelligent and a great guy. He did everything in his power to hold the troops together. But when your company is hit with a devastating low blow like we were from CIBC, and your company virtually runs out of money, you have to take alternative steps,'' Volpe said. ``I worked for two airline companies prior to joining Baltia, and I saw first hand what a roomful of powerful attorney's could do. I'm amazed how Steffanie Lewis (Baltia's Attorney) has hung in there and stuck to her guns. In terms of legal horsepower CIBC definitely has more horses...but having more horses doesn't make them right... morally or legally!''
Brian Glynn, Vice President of Marketing for Baltia Airlines since its inception in 1989 is still very confident that Baltia will prevail in this ``David versus Goliath'' struggle. ``We put everything into this...our hearts, our souls, our money and our energy. We finally saw the light at the end of the tunnel when we succeeded over eleven other airlines to win this route to St. Petersburg,'' he said. ``This was no small feat. We had the talent, the support and the plan to make it work. And we still do!'' Glynn said he has never had a job that he enjoys so much as his position with Baltia. ``Working with the top officials in St. Petersburg and planning our satellite connections to areas where the residents, who felt ignored from the rest of the world, were so excited to meet with us.'' ``St. Petersburg is such an amazing city. To have two great cities connected by our efforts is extraordinarily exciting.'' ``From cultural, technological, and industrial standpoints, St. Petersburg stands out in the world. Rachmaninoff's first concerto was premiered there, Prokofiev showcased his works there and it is even argued that Shakespeare's Romeo and Juliet also premiered in St. Petersburg. They have more cultural exchange programs than anywhere else in the world,'' Glynn stated.
``We made tremendous sacrifices for this project,'' Glynn said. ``Some far beyond the call of normal duty. I have watched our families grow up under the strain of this dream. I have watched marriages crumble under the burden of the long hours and tremendous tasks,'' Glynn added. ``We put a wonderful team of tremendous talent together. One that I don't think could be easily duplicated. The DOT recognized this When CIBC pulled the rug out from under us they hurt a lot of extremely good and talented people.'' ``The early visionaries of this project, Igor Dmitrowsky, Walter Kaplinsky, who invested every penny he had to his name, Steffanie Lewis, our General Counsel and myself were really crushed emotionally and monetarily when CBIC did this to our company,'' Glynn said. ``CIBC damaged our reputation for no justifiable reason other than their own self-interests,'' Glynn said. ``They devastated our strong financial position...and we didn't even need them.'' ``Their excuses make no sense at all. They were part of Hornblower's and Baltia's plans for over a year. Then they pulled out five days before trading was to start.Give me a break!'' ``Of course it hurt Hornblower & Weeks too. They did a great job on this offering and they were hit with a bombshell as well,'' Glynn said. Hornblower & Weeks also has an action against CIBC relative to the Baltia Airlines, Inc offering. ``Fortunately we are going to continue and we will prevail,'' Glynn concluded.
Baltia is the last story, so scroll down. (Now need to subscribe to access this news article. I wrote several extensive posts on CIBC here, back in about 2008):
http://theairlinenews.com/Archive/a20010319.html
BLTA
In a nutsehell, in the year 1999, Wall Street Broker Hornblower & Weeks was all set to do a BLTA $5,000,000 NASDAQ IPO. However, at the last minute, 5 days before Closing (when BLTA had no time for an alternative plan), the Clearing Agent for Hornblower, CIBC Oppenheimer giving no logical reason, immorally and illegally, simply refused to process the BLTA IPO, effectively killing the deal.
http://investorshangout.com/post/view?id=4290612
CIBC Pulls Out Financial Rug on BLTA
March 19, 2001
In the wake of a decision by the Canadian Imperial Bank of Commerce (CIBC) to withhold their clearing-house processing for a public offering by New York based Baltia Airlines, ``incredible loss and misery has been left,'' according to Igor Dmitrowsky, Baltia's founder and CEO. Baltia Airlines, Inc. is suing CIBC and its wholly owned subsidiary, CIBC Oppenheimer for damages of $150 million under the Securities Exchange Act and conspiracy under U.S. federal racketeering provisions (RICO). The case will be heard on March 26, at the US Court of Appeals in New York (40 Center Street, Foley Square, United States Courthouse,10:00 A.M.) The US Department of Transportation awarded Baltia Airlines the only non-stop route between St. Petersburg Russia and North America. Flying out of JFK Airport, their five round trip flights per week would take eight hours each way. Baltia, to qualify as a US Air Carrier for this route, proved to the DOT that they were fit, willing and able. Their bid was chosen over eleven other applicants. Baltia's $5 million share offering was approved by the Securities Exchange Commission and listed on the Nasdaq Small Cap Market. Hornblower & Weeks, Inc., a Wall Street brokerage company, and Baltia's underwriter, agreed to acquire all the shares on a firm commitment offering. All the stock was pre-sold by Hornblower to its clients. Five days before the trading was to start, CIBC, Hornblower's clearing house for many years, informed them that would not process any orders relating to Baltia.
Larry Hecker, Vice President and Director of Operations for the small airline, and former Deputy Administrator for the FAA under President Reagan, said, ``Baltia Airlines would have been in operation a long time ago if it wasn't for CIBC.'' ``They didn't even give a reason for their withdrawal, and in my opinion what they did was illegal and immoral,'' he said. Hecker went on to say that, ``CIBC made both a written and oral commitment with Hornblower & Weeks. Then CIBC made their departure at the last minute, with no explanation, no forewarning, no chance to replace them...nothing!'' ``They had more than a year to leave if that was their intention. Obviously there was more to it'', he said. ``I believe in the concept and I believe in Igor,'' he said. ``He is one of the most tenacious, honest and admirable men I have ever known,'' Hecker said. ``Baltia was a good idea when it was conceived, and for many reasons it's even a better idea now.'' Hecker is generally considered by most business persons and government officials associated with the field of aviation to be the one individual responsible for TWA's turnaround from 1993 to 1995.
Bob Volpe, 44, his wife and their two small sons, of Brooklyn New York are ``still reeling'' from CIBC's ``derailment'' of Baltia's public offering. ``We were so proud to be a part of this exciting opportunity and it ended up costing us most of our life's savings and our pension fund. The news that CIBC had backed out of their commitment was devastating to us.'' Volpe is still listed as the Director of Technical Operations for Baltia Airlines in the company's prospectus and claims he would ``go back in a minute if they get their financing together.'' He took another job in the computer field after the public offering was ``slammed shut'' by CIBC. In 1998 Volpe took the job with Baltia because he ``was so impressed and confident with the team, their talent and their terrific plans.'' ``I wanted to have the chance to show what airline mechanics are all about and to go far beyond, even the strictest guidelines of the FAA. It was the opportunity of a lifetime I dreamed about,'' he said. ``Igor is very intelligent and a great guy. He did everything in his power to hold the troops together. But when your company is hit with a devastating low blow like we were from CIBC, and your company virtually runs out of money, you have to take alternative steps,'' Volpe said. ``I worked for two airline companies prior to joining Baltia, and I saw first hand what a roomful of powerful attorney's could do. I'm amazed how Steffanie Lewis (Baltia's Attorney) has hung in there and stuck to her guns. In terms of legal horsepower CIBC definitely has more horses...but having more horses doesn't make them right... morally or legally!''
Brian Glynn, Vice President of Marketing for Baltia Airlines since its inception in 1989 is still very confident that Baltia will prevail in this ``David versus Goliath'' struggle. ``We put everything into this...our hearts, our souls, our money and our energy. We finally saw the light at the end of the tunnel when we succeeded over eleven other airlines to win this route to St. Petersburg,'' he said. ``This was no small feat. We had the talent, the support and the plan to make it work. And we still do!'' Glynn said he has never had a job that he enjoys so much as his position with Baltia. ``Working with the top officials in St. Petersburg and planning our satellite connections to areas where the residents, who felt ignored from the rest of the world, were so excited to meet with us.'' ``St. Petersburg is such an amazing city. To have two great cities connected by our efforts is extraordinarily exciting.'' ``From cultural, technological, and industrial standpoints, St. Petersburg stands out in the world. Rachmaninoff's first concerto was premiered there, Prokofiev showcased his works there and it is even argued that Shakespeare's Romeo and Juliet also premiered in St. Petersburg. They have more cultural exchange programs than anywhere else in the world,'' Glynn stated.
``We made tremendous sacrifices for this project,'' Glynn said. ``Some far beyond the call of normal duty. I have watched our families grow up under the strain of this dream. I have watched marriages crumble under the burden of the long hours and tremendous tasks,'' Glynn added. ``We put a wonderful team of tremendous talent together. One that I don't think could be easily duplicated. The DOT recognized this When CIBC pulled the rug out from under us they hurt a lot of extremely good and talented people.'' ``The early visionaries of this project, Igor Dmitrowsky, Walter Kaplinsky, who invested every penny he had to his name, Steffanie Lewis, our General Counsel and myself were really crushed emotionally and monetarily when CBIC did this to our company,'' Glynn said. ``CIBC damaged our reputation for no justifiable reason other than their own self-interests,'' Glynn said. ``They devastated our strong financial position...and we didn't even need them.'' ``Their excuses make no sense at all. They were part of Hornblower's and Baltia's plans for over a year. Then they pulled out five days before trading was to start.Give me a break!'' ``Of course it hurt Hornblower & Weeks too. They did a great job on this offering and they were hit with a bombshell as well,'' Glynn said. Hornblower & Weeks also has an action against CIBC relative to the Baltia Airlines, Inc offering. ``Fortunately we are going to continue and we will prevail,'' Glynn concluded.
Baltia is the last story, so scroll down. (Now need to subscribe to access this news article. I wrote several extensive posts on CIBC here, back in about 2008):
http://theairlinenews.com/Archive/a20010319.html
BLTA
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