Court Updates

January 23, 2012

Limited Objection to Notice of Presentment and Establishment Procedures for the Protection of Confidential Information Provided by the Debtors to the Official Committee of Unsecured Creditors

The debtors seek the authority to condition disclosure of AerCap Confidential Information to the Official Committee of Unsecured Creditors upon entry of a confidentiality agreement which is acceptable to AerCap, and grant AerCap further relief as the Bankruptcy Court deems just.

The hearing is scheduled for January 20, 2012 at 12:00 noon. The objection deadline is January 20, 2012 at 11:30 a.m.

Stipulation, Agreement, and Order between American Airlines, Inc. and Koch Supply & Trading, LP

The debtors stipulate and agree to enter into, modify, continue performance, and provide credit support under derivative contracts with Koch Supply & Trading, L.P.

January 20, 2012

Debtors' Objection to Motion to Dismiss Bankruptcy
The debtors filed an objection to the motion of Vern Englert. Englert had filed a motion to dismiss the AMR bankruptcy. 
The hearing is scheduled for January 27, 2012 at 10:00 a.m.
Debtors' Objection to Motion for Relief from Automatic Stay

The debtors filed an objection to the motion of Lawrence Meadows.  Meadows had filed a motion for relief from the automatic stay to prosecute his prepetition action against American, Airlines Pilot Retirement Benefit Program, the Pension Benefit Program, and the Pension Benefits Administration Committee. 

January 16, 2012

Motion Further Extending Time to File Statements and Schedules

The Debtors filed a motion requesting that the Court further extend the deadline to file their (i) schedules of assets and liabilities, (ii) schedules of executory contracts and unexpired leases, and (iii) statements of financial affairs by an additional thirty (30) days – through February 27, 2012 – without prejudice to the Debtors’ right to request additional time should it become necessary.
The hearing on the motion is scheduled for January 27, 2012 at 10:00 a.m. (Eastern).  Objections are due by January 20, 2012 at 4:00 p.m. (Eastern).
January 13, 2012

Rule 2004 Motion of the Pension Benefit Guaranty Corporation

The Pension Benefit Guaranty Corporation (“PBGC”) filed a motion for an order under Bankruptcy Rule 2004 directing AMR Corporation and its affiliates (“AMR”) to produce documents and authorizing the issuance of subpoenas for testimony relating to four single-employer defined-benefit plans (the “Pension Plans”) maintained by AMR for its approximately 130,000 employees and retirees (the “Rule 2004 Motion”).

January 11, 2012

Withdrawal of Limited Objection of HSH Nordbank to Section 1110 Election

HSH Nordbank, AG (“HSH Nordbank”), individually and as agent for itself and other lenders, withdrew its limited objection to election pursuant to section 1100(a) of the Bankruptcy Code with respect to certain aircraft because it received the proper cure amounts as set forth in the limited objection.
January 11, 2012

Application to Retain Perella Weinberg Partners as Financial Advisor

The Debtors filed an application to retain Perella Weinberg Partners LP. (“PWP”) as their financial advisor, retroactive to the petition date, in accordance with the terms and conditions of an engagement letter dated December 15, 2011 and effective as of November 10, 2011. According to the application, PWP will provide labor-related restructuring advice, which includes reviewing and analyzing the strategic alternatives available to the Debtors with respect to its labor agreements, costs and negotiations and its pension and other post-retirement. According to the application, the professionals of PWP have been employed as financial advisors and as investment bankers in a number of troubled company situations, including the chapter 11 cases of Texas Rangers Baseball Partners, Accuride Corporation, Allegiance Telecom Inc., American Color Graphics, Inc., Calpine Corporation, Delta Air Lines Inc., Maxxim Medical, Solutia Inc., Panolam Industries, Pierre Foods, Inc. and Spectrum Brands, Inc. The Debtors state that PWP’s professionals have worked closely with the Debtors’ management and other professionals and have become well acquainted with the Debtors’ operations, debt structure, creditors, pension and labor structure, business and operations and related matters.

January 11, 2012

Withdrawal of Limited Objection of U.S. Bank Trust National Association to Section 1110 Election

U.S. Bank Trust National Association (“U.S. Bank”), as trustee, recently withdrew its limited objection to the Debtors' election pursuant to section 1100(a) of the Bankruptcy Code with respect to American Airlines 2009-1A EETC Aircraft Equipment because U.S. Bank received the scheduled payment from the Debtors on January 3, 2012.

January 07, 2012

Order Authorizing the Retention of The Garden City Group
The Court entered an order authorizing the retention of The Garden City Group as claims and noticing agent, retroactive to the petition date.  The Garden City Group will have full responsibility for the distribution of notices and the maintenance, processing and docketing of proofs of claim filed in the bankruptcy cases. This is an administrative function.

January 06, 2012

Stipulation between the Debtors and Milagros Ponce to Modify the Automatic Stay

The Debtors propose to enter into a stipulation with Milagros Ponce (the “Claimant”). According to papers filed with the Court, the Claimant is a plaintiff in a lawsuit against certain of the Debtors and non-debtors (the “Non-Debtor Defendants”) that is pending in the Supreme Court of the State of New York, Bronx County (the “Action”). Before the bankruptcy filing, certain of the Non-Debtor Defendants asserted cross-claims and/or counterclaims against certain of the Debtors in the Action. The trial in the Action is scheduled to begin on January 17, 2012.
AMR - Pleading Update 1/5/2012
January 05, 2012

Application to Employ Rothschild as Financial Advisor and Investment Banker

The Debtors recently filed an application seeking to employ Rothschild, Inc. (“Rothschild”) as financial advisor and investment banker in accordance with the terms and conditions of an engagement letter dated October 17, 2011.  According to the application, Rothschild has more than forty (40) offices in more than thirty (30) countries, and its professionals have extensive experience advising companies in the airline industry on restructuring and strategic advisory matters.  For example, Rothschild’s professionals provided financial advisory services to UAL Corporation in connection with its chapter 11 restructuring, to MBIA in connection with the chapter 11 restructuring of US Airways, and advised companies in connection with labor and pension issues, including the Pension Benefit Guarantee Corporation with respect to the bankruptcy of Northwest Airlines.

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