SOURCE: Dallas Morning News
U.S. Bankruptcy Judge Sean Lane told American Airlines attorneys Tuesday that he expects to rule soon on whether the airline can modify retiree health and life insurance benefits.
Retirees, who face losing American’s help on paying insurance premiums, have been waiting for the judge to rule since Lane held a hearing Jan. 23, 2013 — nearly 14 months ago. American first asked for a ruling in July 2012.
At a hearing Tuesday in Lane’s New York courtroom, the judge told lawyers he has a draft order about ready to go and would expect to issue it in a couple of weeks, representatives for American and the Committee of Retired Employees said after the hearing.
American wants the judge to rule that the airline has the right to change its retiree health and welfare benefits. American has said it would keep the plans, but require retirees to pay 100 percent of the premiums if the carrier is allowed to modify the benefits.
The Committee of Retired Employees, appointed to represent retiree interests during American’s Chapter 11 bankruptcy case, has argued that the company made binding promises under federal law and cannot unilaterally modify the benefits.
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