Court Updates

November 30, 2011

The following orders were entered by the court since our prior update: 

  • Interim Order Approving Assumption Of Certain Executory Credit Card And Payment Agreements
  • Interim Order Approving Assumption of Interline Agreements, Clearinghouse Agreements, Arc Agreements, Billing and Settlement Plan Contracts, Cargo Agreements, Oneworld Agreements, and Alliance Agreements, (ii) Pursuant to 11 U.S.C. §§ 105(A) and 363(B) Authorizing Debtors to Honor Prepetition Obligations Related to Carrier Services Agreements, Connection Carrier Agreement, GDS Participation Carrier Agreements, Travel Agency Agreements, Booking and Online Fulfillment Agreements, Cargo Agency Agreements, ATPCO Agreement, Deeds of Undertaking and Related Agreements, and (iii) Pursuant to 11 U.S.C. § 362 Modifying the Automatic Stay to the Extent Necessary to Effectuate the Requested Relief
  • Interim Order (I) Authorizing Debtors To (A) Continue And Renew Their Letter Of Credit And Surety Bond Programs, (B) Continue Corporate Credit Card Program, And (C) Assume a Certain Executory Contract And (II) Scheduling A Final Hearing
  • Interim Order (I) Authorizing, But Not Directing, Debtors to Pay Prepetition Taxes and Assessments, and (II) Authorizing And Directing Financial Institutions to Honor and Process Related Checks and Transfers And (III) Scheduling Final Hearing
  • Order (A) Granting Administrative Expense Status to Undisputed Obligations to Vendors Arising from Postpetition Delivery of Goods and Services Ordered Prepetition and Authorizing Debtors to Pay Such Obligations in Ordinary Course of Business
  • Order (I) Waiving Requirement To File List Of Creditors And (II) Granting Debtors Authority To Establish Procedures For Notifying Creditors Of Commencement Of Debtors' Chapter 11 Case.
November 30, 2011

This afternoon, the Court entered the following orders:

  • Interim Order (I) Authorizing, But Not Directing, Debtors to (A) Continue Their Insurance Programs, and (B) Pay All Insurance Obligations, (II) Modifying the Automatic Stay with Respect to Workers Compensation Claims, and (III) Authorizing and Directing Financial Institutions to Honor and Process Related Checks and Transfers And (IV) Scheduling Final Hearing
  • Interim Order Authorizing Payment Of PrePetition (I) Claims Of Independent Contractors (II) Claims Related To Improvement Projects, And (III) Scheduling Final Hearing
  • Interim Order Authorizing Payment Of Certain Prepetition (I) Shipping And Delivery Charges For Goods In Transit And (II)Customs Duties And Charges, And Scheduling Final Hearing
  • Interim Order (I) Establishing Notification Procedures And Approving Restrictions On Certain Transfers Of Claims Against And Interests In The Debtors' Estates, And (II) Scheduling Final Hearing
November 29, 2011

The first day hearing is drawing to a close. Certain of the orders approving the first day motions require minor modifications to accomodate comments by the court and certain other parties in interest. The debtors will revise the orders and submit them to the court for entry later this evening. We will send copies of the orders once they appear on the court's docket.

Regards,

S. Jason Teele, Esq.
Member of the Firm
LOWENSTEIN SANDLER PC

November 29, 2011

By way of update, we are currently in court for the first day hearing in this case. The court just granted the debtors' motions: to pay critical vendors in the debtors' discretion ($50mm for the next 21 days); to pay foreign creditors; to pay fuel suppliers; to honor and enter into derivatives agreements in the ordinary course (for fuel cost hedging purposes); to continue customer programs (such as frequent flyer and rebate programs); and to assume the interlink agreements.

The court also has now approved the debtors' motions: to assume the subscriber agreement with Citibank (for credit card processing and related matters); to pay the prepetition claims of common carriers and warehousemen; to pay independent contractors for services provided to the debtors; to continue all insurance programs; to maintain the debtors' prepetition cash management system; and, crucially, to pay outstanding prepetition wages and salaries and and to make payments in connection with employee benefit programs.

The hearing is continuing and we will keep you updated.

Regards,

S. Jason Teele, Esq.
Member of the Firm
LOWENSTEIN SANDLER PC