« DFW Airport faces possible cost overruns of its $2.3 billion terminal renovation project | Main | American made $259 million in June »

July 30, 2013

City of Fort Worth files limited objection against AMR's restructuring plan

The city of Fort Worth filed an objection to AMR Corp.s bankruptcy reorganization on Tuesday, saying the Fort Worth-based carrier should not be allowed to terminate its lease on its former Alliance maintenance facility as part of its restructuring plan.

In the filing, city attorneys say American Airlines’ parent company did not list the Alliance lease as one of the contracts it plans to keep as part of its restructuring. Separately, the filing also seeks to enforce a court order related to an “illegal discharge into the city’s sanitary sewer” in December 2012.

“What we’re trying to do is just preserve our rights for both those issues,” said Chris Mosley, the city’s senior assistant attorney. He said the city is in negotiations with American to terminate the Alliance lease.

American still holds the lease to the Alliance Airport maintenance facility which it closed and vacated earlier this year. The carrier has not asked the bankruptcy court to terminate its lease but Mosley said the city expects a separate filing by AMR to reject the lease by Aug. 15.

As long as American holds the 99-year lease, the city is unable to re-lease the facility to another company. When American announced it was shutting down the maintenance base last year, city officials began marketing the space to a dozen potential companies and had two firms tour the facility.

AMR declined to comment on the city’s filing.

The bankruptcy court has scheduled a hearing for Aug. 15 to consider confirming AMR’s restructuring plan which includes a merger with US Airways. Creditors had until Monday to vote to approve or reject the plan.

Several other interested parties also filed limited objections which were due Tuesday. Denton County and the city of Waco filed a joint limited objection related to unpaid property tax claims. Los Angeles County also filed an objection related to tax claims.

Two pilots groups — the former TWA pilots and the US Airline Pilots Association, which represents US Airways pilots — objected to AMR’s restructuring plan. USAPA said the plan does not include a feasible plan particularly in regards to AMR’s regional carrier, American Eagle.

“Debtors must demonstrate that, after confirmation, Debtors’ business plan is likely to provide sufficient cash flows and profitability to avoid the need for another bankruptcy filing. Here, they have not done so,” the USAPA filing said.

-Andrea Ahles


TrackBack URL for this entry:

Listed below are links to weblogs that reference City of Fort Worth files limited objection against AMR's restructuring plan:



AMR declined to comment on the city's filing........Huh, Imagine that....they're doin you city bigshots just like they're doin everybody else.......HEHEHJEHEHAHAHAHAHEHHAHHA.....Hows it feel? They keep sayin, we keep doin it to em over and over again....:)And the Govt calls it legal

The comments to this entry are closed.