Independent Review Of American Airlines Bankruptcy Case

: Chris Lee Law Firm

  Filed under: News

AMR bankruptcyWhile American Airlines parent company, AMR, has been presenting its case in bankruptcy court over the last few weeks, major investors have sat by quietly as the company works out potential options for the future. However, as talk of union contract rejections versus a US Airways merger swarm the table, AMR investors are beginning to wonder exactly which would be the better option for future success.

Legal Advisement

Investors in AMR Corp. have hired their own team of financial and legal advisers to review the American Airlines bankruptcy case. Two bondholder groups were formed to assess the current ideas being tossed around by AMR. Their goal is to evaluate whether an independent exit from Chapter 11 or the potential merger with US Airways would be best solution for resolving debts and moving forward with profitable operations.

The private talks being held by these two groups are not likely to have any immediate bearing on the outcome of the case, but do give the investors leverage in court. The groups may be able to sway creditors in favor of one solution over the other, giving creditors more power in court to fight against the opposing alternative. AMR Corp. isn’t pleased with the review as they have been pushing for the independent exit by means of cancelled labor contracts for months. Only ordered to consider “potential consolidation scenarios” earlier this month, AMR is hoping for a decision in their favor in court this June.

 


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