(Reuters) – A U.S. judge on Wednesday, August 15, denied a request by American Airlines’ parent AMR Corp. to abandon collective bargaining agreements with its pilots’ union, despite AMR’s goal to save more than $1 billion a year in labor costs. Judge Sean Lane, who is overseeing AMR’s bankruptcy restructuring, turned down AMR’s motion in part because it would give […]
Read MoreIt appears that businesses are not filing bankruptcy at a pace that was predicted earlier this year, after Kodak and Hostess filed their bankruptcy cases, and following AMR‘s fourth quarter filing in 2011. See Where Are the Tidal Waves of Chapter 11 Bankruptcies and Where Are the Bankruptcy Filings (Part II). Indeed, in May 2012, the American […]
Read MoreAMR Corporation, the parent of American Airlines, has sought court permission to reduce retiree health benefits and impose out-of-pocket costs for access to certain other health coverage. The Airline announced that it would discontinue retiree life insurance and would end medical coverage for those over the age of 65. The over-65 group would, instead, have […]
Read MoreOn March 22, 2012, American Airlines, which filed bankruptcy on November 29, 2011, obtained bankruptcy court approval to extend its exclusive right to file a plan of reorganization until September 28, 2012. Under section 1121 of the Bankruptcy Code, a debtor has an exclusive period of time (120 days after the commencement of a case) […]
Read MoreAMR Corp., which filed bankruptcy in December 2011, recently announced the deep cuts that most consultants had long predicted. AMR said it is eliminating 13,000 jobs, terminating its four pension plans, grounding older planes and restructuring supplier contracts, in hopes of saving $2 billion in operational expenses. The job cuts are not news in airline […]
Read MoreThe 4th quarter of 2011 was the quarter of massive bankruptcies. A variety of economic pressures, such as decreased demand, the impact of rising commodity prices, and concern over the Euro zone contagion, became too much for even some of the biggest American companies to survive. On October 31st, MF Global led the onslaught of […]
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