American Airlines Group Inc (AAL)

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Fort Worth news:

original: http://www.star-telegram.com/2011/12/12/3589880/american-faces-first-hearing-with.html

American faces first hearing with creditors today
Posted Monday, Dec. 12, 20110 Comments PrintReprintsShare


BY ANDREA AHLES
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Lawyers for American Airlines and its creditors will gather today in New York for the first court hearing since the carrier's parent company, AMR Corp., filed for bankruptcy last month.

The hearing agenda includes three procedural motions, with the carrier asking bankruptcy Judge Sean Lane to establish various processes for handling claims from vendors who delivered goods to the Fort Worth-based carrier before the bankruptcy petition was filed Nov. 29 but were not paid.

There are only three objections to the proposed processes -- two from Goodrich Corp. and one from Freshpoint Dallas, which provides produce to American. American's attorneys say they plan to submit revised proposals at the hearing to address the objections.

More than 200 documents have been filed so far by AMR and other interested parties in the bankruptcy case.

On Monday, AMR also asked the court to set up a procedure that allows American to continue receiving plane deliveries from Boeing. American has arranged to buy 32 Boeing aircraft in the next year, mostly 737-800s, which are replacing the carrier's aging MD-80 fleet.

"Although the Debtors believe that both the purchase and delivery of the aircraft, and the entry into related sale leaseback or financing transactions are part of the Debtors' ordinary course of operations and do not require Court approval, this proposed protocol will provide assurance to Boeing and the sale leaseback or financing counterparties that these transactions are authorized," AMR said in its filing.

AMR said the creditors committee, which includes Boeing Capital, does not object to this plan.

Another court hearing is scheduled for Dec. 22 to address this motion as well as motions seeking to terminate property and aircraft leases. The company has asked the court to release it from its Kansas City maintenance facility lease, which expires in 2029, and its lease on Terminal 2 at Chicago Midway Airport, which expires next year. Last year, American closed the Kansas City facility, which it received as part of its purchase of TWA. It no longer serves Midway Airport.

Andrea Ahles, [phone]

Twitter: @Sky_Talk



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