Court Updates

March 01, 2012

The Bankruptcy Court approved the debtors' applications to retain and employ Skyworks Capital, LLC as an aircraft restructuring advisor, McKinsey Recovery & Transformation Company, Inc. Japan as a management consultant and Boston Consulting Group, Inc as a strategic consultant including to review and streamline the debtors' management structure. As to Boston Consulting Group, Inc., the court overruled the objection of the Association of Professional Flight Attendants.

February 24, 2012

The Debtors' filed a Sixth Omnibus Motion of Debtors for Entry of Order Pursuant to 11 U.S.C. § 365(a) Authorizing Rejection of Certain Executory Contracts (Docket No. 1338).

According to the motion, over the years, in order to finance the costs of acquisition, construction, equipment, and improvement by American Airlines of certain airport facilities located at the Dallas/Fort Worth International Airport and the Alliance Airport, the Dallas/Fort Worth International Airport Facility Improvement Corporation (“DFWFIC”) and the Alliance Airport Authority, Inc. ( “AAA”), issued certain special facilities revenue bonds. In connection therewith, American Airlines entered into separate Facilities Agreements with DFWFIC and AAA relating to each series of special facilities revenue bonds issued by DFWFIC or AAA, respectively. To date, American Airlines is a party to seven Facilities Agreements with DFWFIC (collectively, the “DFW Facilities Agreements”) and two Facilities Agreements with AAA (collectively, the “AAA Facilities Agreements”).

February 22, 2012

Today the TWU submitted its response to (i) the motion of the AMR Retirees Pension Protection Corp. (“ARPPC”) for entry of an order appointing an official committee of retired employees pursuant to section 1114(d) of title 11 of the United States Code (the “Bankruptcy Code”), and (ii) the motion (Docket No. 1132) of the Ad Hoc Committee of Passenger Service Agents for appointment of a retirees committee pursuant to 11 U.S.C. § 1114(d) (collectively, the “Motions”) not take a position on the Motions but to confirm that  should the Court direct the appointment of a retiree committee pursuant to section 1114(d) of the Bankruptcy Code, the TWU elects to serve as the representative of TWU-represented retirees and would seek to participate, through a designated representative, as a member of such committee.

February 11, 2012

On February 10, 2012, the TWU filed a motion for relief from the automatic stay on behalf of Everton White. By this motion, the TWU seeks an order terminating or, alternatively, modifying the automatic stay imposed pursuant to section 362 of the Bankruptcy Code, to permit Mr. White to continue to pursue a certain claim that Mr. White has filed against the Debtors via a complaint/claim form before the State of New York Workers’ Compensation Board, Discrimination Unit, solely to the extent of the Debtors’ workers’ compensation funds and/or other relevant insurance policy funds applicable to the claims asserted in Mr. White's claim.

February 09, 2012

 Yesterday the Debtors filed a Motion to Pay or Honor Certain Prepetition Obligations in Connection with Labor Arbitration Hearings (the "Motion").   

The Debtors are required, under the Railway Labor Act and certain collective bargaining agreements (the "CBAs"), to establish and engage in a regulated procedure to settle labor grievances.  The Railway Labor Act requires the parties to establish a system board of adjustment (the “System Board”) for the purpose of adjusting and deciding disputes or grievances which may arise under the CBAs. 
 
February 06, 2012

Meeting of Creditors

The initial meeting of creditors has been adjourned to March 22, 2012 at 4:00 p.m. (ET) at 80 Broad Street, 4th Floor, New York, NY 10004.


Nicole Stefanelli
Associate
Lowenstein Sandler PC

January 27, 2012

HEARING UPDATE

The Court considered and granted the Motion of Debtors for Entry of Order Pursuant to 11 U.S.C. Sections 105(a), 345(b), 363(b), 363(c), and 364(a) and Fed. R. Bankr. P. 6003 and 6004 (A) Authorizing Debtors to (i) Continue Using Existing Cash Management System, (ii) Honor Certain Prepetition Obligations Related to the Use Thereof, and (iii) Maintain Existing Bank Accounts and Business Forms; (B) Extending Time to Comply with 11 U.S.C. Section 345(b) over the objection of the United States Trustee’s office.

The Court considered and granted the Motion of Debtors for Entry of Order Pursuant to 11 U.S.C. §§ 105(a) and 366 (i) Approving Debtors’ Proposed Form of Adequate Assurance of Payment to Utilities, (ii) Establishing Procedures for Resolving Objections by Utility Companies, and (iii) Prohibiting Utilities from Altering, Refusing, or Discontinuing Service over the objection of several utilities.

The Court considered and agreed to enter the Stipulated Protective Order Pursuant to 11 U.S.C. § § 105(a) and 107(b) and Fed. R. Bankr. P. 9018 Establishing Procedures for the Protection of Confidential Information Provided by the Debtors to the Official Committee of Unsecured Creditors.

January 27, 2012

Notice of Presentment of Stipulation and Order Approving Extension for N9420D

The Debtors filed a notice of presentment of a stipulation and order between the Debtors and AWAS Aviation Acquisitions Limited, MSA I, and Wilmington Trust Company approving a Section 1110(b) extension for tail number N9420D.

Presentment Date is February 3, 2012 at 4:30 p.m. The objection deadline is February 3, 2012 at 4:00 p.m.

Relevant tail number: N9420D.

Notice of Election with Respect to N784AN, N760AN, and N761AJ

Debtors filed notice that the Court entered an order authorizing the Debtors to enter into agreements related to tail numbers N784AN, N760AN, and N761AJ. The Debtors agreed to perform all obligation under related agreements and cure all defaults, as permitted under the related agreements.

The objection deadline is February 3, 2012 at 4:00 p.m.

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.

AMR - Pleading Update 1/20/2012
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. 

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