American Airlines recently gained an important accomplishment for the company. It wasn't that long ago that they had filed for Chapter 11 bankruptcy. This came back in November of 2011, making them the last of the U.S. carriers to turn to bankruptcy as their option. Since that time, things have turned around for them and this past Wednesday the company gained approval from the bankruptcy court to join with US Airways. The plan to merge was announced last month and the integration of these two companies will result in the largest airline in the world.
Judge Sean H. Lane presided over the case and he stated while in the Federal Bankruptcy Court that the combination of the two was a great result in the circumstances. The company had originally been opposed to the idea, but over time it appeared to be the best available option and they were encouraged to take this step from their creditors' committee. The company was declined the $20 million severance that would be for the current chief executive of the AMR Corporation, the parent of American Airlines. The judge that declined to sign off on the severance package noted that the company may include something regarding it in their formal restructuring plan which is a requirement of those in bankruptcy. While American gained the approval of the court, they will still need to gain this from US Airway shareholders and Justice Department antitrust regulators.
It is being handled in the U.S. Bankruptcy Court, Southern District of New York and is not expected to come to a resolution until later in the year. Doug Parker, who currently sits as the chief executive over US Airways Group will be over the new airline. With the merging, the airline will carry out around 6,700 each day, putting them above United. This is expected to include an annual revenue of around $40. Bankruptcy can work for individuals and business, allowing them the assistance they need to get out of debt and back on their feet. If you are facing debt, don't wait to retain quailed representation. Contact the Long Island bankruptcy lawyer at our firm.