Echoing Tuesday’s opinion by the parent of America Airlines’ chief restructuring officer, a restructuring adviser to AMR Corp. said drastic cuts in labor costs are needed. Managing Director David L. Resnick also said the company’s stakeholders will probably want it to explore consolidating with a rival airline after it emerges from bankruptcy.
American Airlines parent AMR Corp.’s chief restructuring officer on Tuesday said the company won’t be able to successfully restructure without drastically cutting its labor costs. Read the Daily Bankruptcy Review article here.
The U.S. Supreme Court began the process of weighing in on one of the hottest issues in corporate bankruptcy Monday, casting harsh eyes on a hotel owner’s attempt to block its secured lender from using debt as currency in a bankruptcy auction. Read the Daily Bankruptcy Review article here.
Alabama’s top court ruled that the state’s struggling cities and counties have the power to file for Chapter 9 bankruptcy protection, a decision that largely frees the state’s most populous metropolitan area to move ahead with its five-month-old bankruptcy case. Read the Daily Bankruptcy Review article here.
This week on The Broke and the Beautiful, a former Black Eyed Peas manager has filed for bankruptcy, Gary Busey is giving out tax tips a little too late, and Lenny Dysktra has nailed a spot in the Los Angeles County Jail.
