American Airlines has filed papers in U.S. Bankruptcy Court that ask for more time to respond to unresolved claims. In the process, we get a scorecard of where the case stands:
— American, parent AMR and related companies had 22,000 claims totaling $307.4 billion filed after the Nov. 29, 2011 filing.
— The parties have resolved 21,700 claims of $304.7 million “by objection, consensual resolution, or treatment” specified in the 2013 plan of reorganization.
— The companies have made “distributions to holders of approximately 7,600 Allowed Claims and to holders of Allowed Equity Interests.”
— There remains 240 claims totaling about $2.7 billion.
— “The Debtors note that the Plan contemplates the treatment and withdrawal of approximately 400 other claims in an approximate amount of $66 billion filed by, among others, the Debtors’ employees, Unions, and the Retiree Committee for wages, salaries, and benefits, but the Debtors’ claims register does not yet reflect the treatment and withdrawal of such claims.”
American et al. asked U.S. Bankruptcy Judge Sean Lane to extend the deadline to Jan. 15, 2015, “so that they may diligently resolve the remaining claims.”
“The Debtors submit that the Proposed Extension will benefit all parties in interest because, among other reasons, the Proposed Extension will provide the Debtors with additional time to attempt to resolve the Remaining Claims consensually without having to burden the Court with litigation and incur the related cost and expense. Absent the relief requested, the Debtors would be forced to object to the Remaining Claims at this time to prevent a potential windfall to some claimants as a result of the ‘deemed allowance’ of such claims.”
One can expect the judge to approve the request as a routine matter. The judge approved the current deadline of Sept. 5 when he extended a previously extended May 6 deadline.