Court Update 12/6/11 – AA Bankruptcy

The Debtors filed a motion to reject 24 aircraft and engine leases. Specifically, the Debtors seek to reject aircraft and engine leases with the following parties:

  • AWAS Aviation Services
  • Banc of America Leasing & Capital, LLC
  • Bank of America, N.A.
  • Bank of Utah
  • City National Bank
  • Deutsche Bank Trust
  • DFO Partnership
  • Jetscape Inc.
  • John Hancock Leasing
  • JP Morgan Chase
  • Key Equipment Finance Inc.
  • MS Financing (Morgan Stanley)
  • MSA I
  • MSA V
  • Norddeutsche Landesbank GiroZentrale (Nord/LB)
  • U.S. Bank N.A.
  • Volito Aviation Services AB
  • Wells Fargo
  • Wilmington Trust Company

The rejected aircraft and engines include:

  • Four (4) Fokker F.28 MK 0100 (Engine: Rolls-Royce Tay 650-15)
  • Seventeen (17) McDonnell Douglas DC-9-82 (Engine: Pratt & Whitney JT8D-217C)
  • Three (3) McDonnell Douglas DC-9-83 (Engine: Pratt & Whitney JT8D-219)

The Debtors also filed a motion to reject and certain unexpired leases of nonresidential real property. Specifically, the Debtors seek to reject the following real property leases:

  • Lease for MCI Overhaul Base in Kansas City, MO
  • Lease for Chicago Midway Airport Terminal 2/Upper Level

The Debtors state that they no longer use these properties and vacated them prior to the filing of these bankruptcy cases.

Both of the lease rejection motions will be heard on December 22, 2011 at 10:00 a.m. (Eastern Time) with objections due by 4:00 p.m. (Eastern Time) on December 15, 2011.

Lowenstein Sandler PC
Sharon Levine, Esq.
S. Jason Teele, Esq.
Nicole Stefanelli, Esq.