February 01, 2013
American Airlines and the UCC filed a motion that requests that the Debtors be granted a further extension of the exclusive period to file a plan of reorganization for twenty (20) days to and including April 1, 2013 and to solicit votes on any plan of reorganization to May 31, 2013, without prejudice to the Debtors’ right to seek additional extensions. The Debtors believe that the reasons to extend include: (i) the Debtors’ cases are large and complex, involving worldwide businesses and many faceted legal and business issues that require substantial time and diligence to resolve; (ii) substantial good faith progress has been made in a collaborative, cooperative, viable working relationship with the UCC; (iii) American and the UCC are pursuing their collaborative review of strategic alternatives that might be beneficial to American’s economic stakeholders and the enterprise; (iv) American needs additional time to negotiate the terms of a chapter 11 plan; (v) American is continuing the process of refining its business plan with the UCC; (vi) American is continuing to work with the UCC and with the committee of retired employees to address and resolve American’s retiree health and life insurance benefits; and (vii) American has been paying post petition obligations as they become due.
The motion is scheduled for hearing on February 14, 2013 at 11:00 a.m. (Eastern Time) and the objection deadline is February 7, 2013 at 4:00 p.m. (Eastern Time).
Lowenstein Sandler LLP
Sharon L. Levine
S. Jason Teele
January 23, 2013
Summary of January 23, 2013 Bankruptcy Court Hearing Regarding Retiree Benefits Issues
The bankruptcy court heard argument at a hearing held on January 23, 2013 at 2:00 p.m., to consider American Airline's ("AA") motion (the "Motion") for summary judgment for a declaration that AA has the unilateral right to modify or terminate "retiree benefits" for all its retirees because the benefits were not legally "vested." It should be noted that the term "Retiree Benefits" does not refer to pension plan payments. It refers to payments by a company for retired employees and their spouses and dependents for medical, surgical, or hospital care benefits, or insurance benefits in the event of sickness, accident, disability or death.
January 09, 2013
On January 9, 2013 at 11:00 AM a hearing was held to resolve several contested and uncontested matters.
The court first heard two motions for relief from the automatic stay filed by U.S. Bank Trust National Association. The US Bank Trust National Association filed the first motion solely as trustee and security agent under the Indenture and Aircraft Security Agreement and filed the second motion as Loan Trustee and Pass Through Trustee for American Airlines 2009-1 EETC, and as Loan Trustee and Pass Through Trustee for American Airlines 2011-2 EETC. The motions filed were opposed by Debtor. The hearing was limited to the question of whether the automatic stay should apply. Judge Lane reserved on this motion.