Saturday April 10, 2021

AMR plans to emerge from bankruptcy in March 2013?

I’ve been reading the series of filings that accompanied Friday’s AMR/American Airlines motion to do away for the lump-sum option in the defined-benefit A Plan, and finding interesting nuggets. Here’s one from the declaration of David Ebenstein, a senior vice president at McKinsey Recovery & Transformation Services U.S., LLC, who estimated the impact of keeping […]

Allied Pilots Association leadership is okay with delay on bankruptcy plan

Like the Association of Professional Flight Attendants before it, the leadership at Allied Pilots Association is okay with a proposed delay in American Airlines’ plan of reorganization. In a message Monday afternoon to members, APA president Keith Wilson suggested that the delay could work to improve the chances for a US Airways takeover of American, […]

Wall Street Journal report: Two hedge funds charge American Airlines with not being transparent or inclusive in its bankruptcy proceedings (Updated with American comment, 4:45 p.m.)

Two hedge funds holding American Airlines Inc.’s debt charged in a letter to chief executive Tom Horton that the company’s Chapter 11 bankruptcy proceedings have not been transparent and have excluded them from discussions about its plan to exit bankruptcy, The Wall Street Journal reported today. Appaloosa Management and Marathon Asset … [visit site to read […]

American Airlines’ parent AMR Corp. asks bankruptcy court for a 30-day extension to file its plan to exit bankruptcy reorganization (Updated, 3:50 p.m.)

American Airlines’ parent AMR Corp. today asked a bankruptcy court judge for a 30-day extension to file its plan to exit bankruptcy reorganization. American has requested that its so-called exclusive period be extended from Dec. 28 to Jan. 28, according to a court document jointly filed today by the airline and its unsecured creditors committee. […]

Jack Butler talks consensual agreements, short fuses, equity stakes and other matters in American Airlines bankruptcy case

After Tuesday’s hearing in New York, I wanted to catch up with Jack Butler, the lead counsel for the unsecured creditors committee in the AMR/American Airlines/American Eagle bankruptcy case. He had said in open court that there had to be a deal between American and the Allied Pilots Association for American to get approval of […]

Bankruptcy trustee objects to agreement to pay unions’ professional fees

The U.S. bankruptcy trustee is objecting to American Airlines’ agreement to pay professional fees incurred by the Transport Workers Union and Association of Professional Flight Attendants. In a limited objection to new contracts approved by TWU and APFA members, U.S. Trustee Tracy Hope Davis said those fees and expenses should undergo the same scrutiny as […]

Allied Pilots Association appeals bankruptcy court decisions

We were expecting the Allied Pilots Association on Wednesday to respond to American Airlines’ Aug. 17 motion in U.S. Bankruptcy Court to throw out its contract with the pilots union. Here’s what we got: “Notice is hereby given that the Allied Pilots Association hereby appeals pursuant to 28 U.S.C. § 158(a)(1) to the United States […]

American Airlines resubmits to the U.S. Bankruptcy Court its request to toss its labor contract with pilots (UPDATED)

American Airlines Inc. has refiled its request to toss its labor contract with pilots in U.S. Bankruptcy Court. American’s renewed request follows U.S. Bankruptcy Judge Sean Lane’s decision on Wednesday to deny American’s initial request after pilots last week voted down a tentative contract agreement.  Lane said the airline’s proposal for unlimited furloughs and changes […]

Bankruptcy judge denies American Airlines’ request to toss its pilots contract, but supports other arguments made by the Fort Worth-based carrier (UPDATED, 6 P.M.)

A U.S. Bankruptcy judge today denied American Airlines Inc.’s request to toss out its collective bargaining agreement with about 10,000 pilots, saying the airline’s proposal to furlough 450 pilots and change flight code-sharing were not justified by its business plan or the practices of rival airlines. However, Judge Sean Lane ruling agreed with American that […]

FAA tells bankruptcy court it may fine American Airlines (UPDATED, 4:20 P.M. CT)

The Federal Aviation Administration has notified the U.S. Bankruptcy Court that it may seek penalties against American Airlines related to ongoing safety investigations. The FAA may seek up to a record $162.4 million in potential civil penalties from American Airlines parent AMR Corp., which is in Chapter 11 bankruptcy reorganization, according to a report published […]