AA Bankruptcy Update
This afternoon the TWU was in U.S. Bankruptcy Court to receive the judge’s ruling on the schedule of the hearing for AMR’s 1113 motion to reject AA’s labor agreements. The court did not set the trial date, but we know the case is moving rapidly. The court did indicate that the union’s responsive pleadings to AA’s 1113 motion are due April 10th.
A follow up hearing is set for this Monday April 2nd in New York to establish the trial schedule. As a result, we expect things to move quickly -bankruptcy law contains a fast 1113 timeline.
The law provides for a hearing to be held fourteen days from the filing of the motion (March 27), which the judge can agree to extend by seven days, giving the parties a total of twenty-one days. However, the parties may mutually agree to a longer schedule providing more time. The trial schedule may be adjusted by the judge and the law provides that the judge has thirty (30) days from the date of the first day of the actual trial, to issue a final ruling. This timeline may be extended by mutual agreement of the parties.
Our TWU attorneys in New York attended the hearing and TWU International Representatives have been summoned to New York this weekend.