You had asked about last week’s order out of the bankruptcy court and whether it meant that the retirees were going to win and keep their medical insurance. The bottom line is that the order did not say that; on the other hand, it did not tell American that it could simply wipe out the medical.
Rather, the order said that there were factual issues that had to be decided at a trial.
Even if there is a trial and the judge rules in favor of the retirees (which denying American’s motion may tilt the odds toward), there are two other potential deal-breakers out there to consider. One is that the company could come back in under§ 1114 and ask the court to let them drop the insurance.
The other is the appellate process, which has three levels of appeal, any one of which could doom the retirees (or could doom the company, for that matter).
As more information is available, we will get it out to you all.
Dale Danker,
President Local 514