In the midst of a major Chapter 11 case, American Airlines must now face continued problems resulting from their bankruptcy filing late last year. AMR has been the center of a litigation case that was filed soon after the 9-11 attacks nearly a decade ago. Concerned that the airline bankruptcy case will disrupt current litigation, one firm steps in to make big requests of the court.
No Disruptions, Please
Cantor Fitzgerald & Co., a securities firm, lost more than 650 employees in the attacks in September of 2001. Suing American Airlines for damages related to the attacks the firm is now concerned that their potential for ever receiving those damages is being threatened by the current bankruptcy case.
Now in bankruptcy, laws dictate that American Airlines is shielded from any litigation or future lawsuits until the bankruptcy case is resolved. However, Fitzgerald has asked a U.S. bankruptcy judge to allow the current litigation to proceed against AMR and lift the automatic stay order that is currently protecting them. Cantor Fitzgerald & Co. says, “The impact of the automatic stay causes significant harm to Cantor Fitzgerald because it further delays Cantor Fitzgerald’s ability to recover a portion of the damages it suffered.”