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American Airlines Receives Green Light to Vote on Bankruptcy Plan

June 7, 2013

American Airlines has been in the news recently for its plan to merge with US Airways and for its bankruptcy filing which originally took place 18 months ago. To be granted the ability to move the company in this direction a number of clearings were needed from the court. Another one of these was given on Tuesday, when a federal bankruptcy judge decided to allow the CEO to be paid a severance package of almost $20 million. This was originally objected to by the U.S. Trustee but the decision was overruled. While the award was kept in the plan for now, there is the potential that it could be voted out later. The company will also now have to gain approval from creditors to be able to exit Chapter 11 bankruptcy and make the merge official.

The plan will be voted on once brought to creditors. The date for the vote has yet to be determined, but the airline companies have proposed having the vote finished by the end of July and the court hearing in mid-August. The merger of US Airways and American Airlines will make it the largest airline and the plan is expected to cost around $11 billion. The new company will be known as American Airlines Group Inc. and its base will be located in Fort Worth, Texas. If the plan is approved then it is possible that the company will be able to exit bankruptcy court around the end of the summer. They are hoping that through the reorganization plan they will be able to develop a stronger foundation for the health of the company and increase the benefits for stakeholders. The final outcome is anticipated to see how bankruptcy allowed this company to start over. If you are dealing with debt, whether it is personal or from a business, contact our Long Island bankruptcy lawyer to find out how bankruptcy may be able to help you.

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When you work with a New York bankruptcy lawyer at Jacoby & Jacoby, you have the benefit of our years of experience and our extensive resources, all at your disposal as you face these trying times. The stress and emotions associated with mounting debt may leave you feeling hopeless and lost. Thankfully, with the help of a lawyer at our firm, you can begin to take control of your finances and experience much needed relief.

By discussing your situation with an attorney at our firm, you can decide whether bankruptcy is right for you. You can learn what your options are. When you work with an experienced attorney at Jacoby & Jacoby, you will have the support and legal counsel of a professional who will know what to do to help. Finally, you can experience relief from creditors. You can stop worrying about losing your possessions or your home.

Contact our firm today, and learn more about the many ways that we can come to your aid. Call Jacoby & Jacoby at (888)452-2629.

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