This is a law suit seeking to apply the automatic stay of section 362 of the Bankruptcy Code or, in the alternative, staying or stopping certain law suits against American and certain of American's directors, officers, employees or some others.
The Debtors argue that any judgment or settlement of the Actions will likely give rise to indemnification claims against the Debtors. In addition, the Debtors are responsible for the defense costs. The continued prosecution of the actions will also irreparably harm the Debtors because (a) the Defendants may try to use judgments or factual findings that are made in the actions against American in their litigation against the Debtors once the automatic stay is lifted; and (b) prosecution of the actions will require participation by the Debtors in discovery and other litigation. The actions all appear to be discrimination or other tort type actions.