American Airlines has been entangled in one of the largest Chapter 11 bankruptcy cases in recent history for going on two years now. After much deliberation, negotiations and setbacks, the end may soon be near. Yesterday, a federal judge approved American Airlines’ plan to emerge from bankruptcy protection.
Flying Into The Future
Speculation and confirmed rumors have long been the forefront of the American Airlines bankruptcy case, as the jobs of thousands of employees lay on the line. After agreeing to merge with US Airways, company executives have been able to avoid some of the highly criticized pension and benefit reductions that once were the forefront of restructuring ideas. However, moving forward in the merger hasn’t been easy.
Now that American has won the approval to move forward with the merger, there is one last obstacle to overcome if the company is to have a successful exit from bankruptcy. A federal lawsuit stands in the way of the completion of the plan, one that will go to trial in November. Although it was hoped the merger could be finalized later this month, the judge’s approval does move a step closer in that direction.