Statement from PBGC Director Josh Gotbaum on AMR Corp. Bankruptcy

WASHINGTON—Pension Benefit Guaranty Corporation Director Josh Gotbaum released the following statement today on the Bankruptcy Filing of AMR Corp.: “Today American Airlines’ parent company filed for bankruptcy. When this happens employees and retirees worry — and they should. In past bankruptcies, workers and retirees have lost their healthcare and seen their pensions cut. Based on…

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Court Update 11/29/11 Final

The first day hearing is drawing to a close. Certain of the orders approving the first day motions require minor modifications to accomodate comments by the court and certain other parties in interest.  The debtors will revise the orders and submit them to the court for entry later this evening. We will send copies of…

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Letter from Daniel Garton to Jose Galarza

Dear Jose: As you know, the AMR Board of Directors has determined that it is necessary for AMR and its affiliates, including American, American Eagle, Executive, and EASI to file a Petition under Chapter 11 of the Bankruptcy Code. Over the past several years, we have made you aware of the cost challenges that Eagle…

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What is happening to my pension during Bankruptcy?

Present retirees will still get their retirement.  There is no changes to the present retirees pension plan at this time. If you are going to retire sometime in the future just know that you are entitled to all of your retirement benefits that you are vested in at this time.

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Court Update 11/29/11, Bankruptcy 2011

By way of update, we are currently in court for the first day hearing in this case. The court just granted the debtors’ motions: to pay critical vendors in the debtors’ discretion ($50mm for the next 21 days); to pay foreign creditors; to pay fuel suppliers; to honor and enter into derivatives agreements in the…

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