This afternoon, the Court entered the following orders: Interim Order (I) Authorizing, But Not Directing, Debtors to (A) Continue Their Insurance Programs, and (B) Pay All Insurance Obligations, (II) Modifying the Automatic Stay with Respect to Workers Compensation Claims, and (III) Authorizing and Directing Financial Institutions to Honor and Process Related Checks and Transfers And…
Tag: Bankruptcy
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…
Court Orders Received: AA Bankruptcy
AMR and American Airlines, American Eagle Receive Court Orders Enabling Continued Normal Business Operations.
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…
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…
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…
Letter from James C. Little to the AA/Eagle Membership
Dear Sisters and Brothers: For years, TWU members have joined together to fight for fairness at American Airlines and American Eagle. We’ve had some long hard battles. We now face a new challenge, as a result of a decision by management at AMR to file for Chapter 11 bankruptcy protection. While we believe this bankruptcy…
Special News Bulletin
It is true American did file for Chapter 11 Today. We are all waking up to bad news, but at this point our contracts are in tact until further notice. Arpey has retired and Horton has taken the position of CEO of AMR. Negotiations have been put on hold until further notice. We are gathering…
AMR Files for Bankruptcy Protection in New York as Talks With Pilots End
American Airlines parent AMR Corp. (AMR) filed for bankruptcy after failing to secure cost-cutting labor agreements and sitting out a round of mergers that dropped it from the world’s largest airline to No. 3 in the U.S. With the filing, American became the final large U.S. full- fare airline to seek court protection from creditors. The Fort Worth,…