Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office
214-733-1775
972-608-0335
903-813-4778

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

Bankruptcy exit plan approved for Texas-based American Airlines

No two bankruptcy cases are the same. Some may be relatively simple to deal with. Others may be complicated by additional litigation that can delay the process. The source of these challenges might be creditors that have filed suit to collect on what they claim is owed to them.

Avoiding such challenge can depend on timing. If the personal bankruptcy petition is filed before creditors take legal action, an automatic stay goes into effect that prevents them from hounding you by phone or putting on pressure through threats of wage garnishment, foreclosure or property repossession. This is the legal system's way of making sure you have the window of opportunity you need to get out of debt and reclaim your financial footing.

The case of the bankruptcy action involving Fort Worth-based American Airlines Inc. offers an example from a business perspective of how complicated things can get. 

As readers may know, American is looking to merge with US Airways as part of plans to exit Chapter 11 bankruptcy. The merger would create the largest commercial air carrier in the world.

The two companies agreed to the action in February, but U.S. antitrust regulators have sought to block it, saying that it would hurt consumers. The result is that there have been two legal fights going on in separate courts.

Legal experts note that it's not uncommon for bankruptcy courts to defer making decisions when there are antitrust questions in play, but that has not happened here.

Instead, the judge noted that the merger has broad support from American creditors, the boards and unions of both companies, US Airways stockholders and European regulators. Concerned that the consensus could erode if the merger plan is held up, he gave it the go-ahead.

Some observers say the bankruptcy court's ruling is a good one for American. They say it clears the way for the airline to devote itself to defeating the anti-competition claims from regulators. 

Source: DallasNews.com, "Bankruptcy judge OKs American's reorganization plan," Sheryl Jean, Sept. 13, 2013

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
6060 North Central Expressway, Suite 602
Dallas, Texas 75206

Phone: 214-733-1775
Map & Directions