Chapter 11 Title 11 United States Code

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Pinnacle Air Reorganised

There have been so many airline bankruptcies this year that I am struggling to keep up! These bankruptcies mean a lot of disruption, a lot of passenger inconvenience and many staff job losses. It is concerning that so many have gone this year, already. Of course, India’s Kingfisher is teetering and may not last much longer. The poor economy and rising oil prices are squeezing airlines further. Some collapses also reflect poor managerial decisions. Now to April. On the 2nd, Pinnacle airlines filed for Chapter 11 Bankruptcy protection. In Chapter 11, the debtor remains in control of its business operations and…

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AA Bankruptcy Restructure- What does it mean? [Updated]

As I suggested on October 4, American Airlines has filed for Chapter 11 bankruptcy. In its petition filed in New York,  AMR reported assets of $24.72 billion and liabilities of $29.55 billion. The company has $4.1 billion in cash. They have lost about 50 billion dollars in the last decade. The bankruptcy will give the carrier the opportunity to reduces its debt levels.  A chapter 11 filing allows for a reorganisation. The aim is to survive. What does this filing mean? Not much will change immediately. Existing ticket holders will find their tickets are honoured. Planes will still…

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