Even the biggest and most well known companies in the world can fall victim to bankruptcy, and such was the case with American Airlines. However, according to Bloomberg, American Airlines will be able to exit bankruptcy protection via its merger with US Airways.
It’s a great example of how there are often multiple solutions to avoiding bankruptcy, regardless of the size, shape or specifics of your financial situation.
With the American Airlines and US Airways Merger, American Airlines will file a Chapter 11 reorganization. The specifics include 28% of stock to US Airways shareholders, with the remaining 72% going to creditors, unions, employees and shareholders.
The upside is of course being able to rid the airline of the debt, while remaining in business and continuing operations. It’s as much of a win-win as the financially troubled company would have hoped to obtain.
In this case, the coast isn’t entirely clear for American Airlines. Their Chapter 11 reorganization plan has been approved, but that’s not the end of the story.
The U.S. Justice Department has already filed an antitrust suit against the merger, and argues that the airline could emerge from bankruptcy without merging with US Airways. American Airlines clearly does not believe that to be possible, and argues that the merger proposal and corresponding Chapter 11 reorganization plan is crucial to maintaining the business and avoiding major destabilization and uncertainty.
At the Law Offices of Brandon Bernstein, we serve our clients as affordable and aggressive Maryland bankruptcy lawyers. We have extensive experience with Chapter 7 and Chapter 13 bankruptcy cases, as well as many other financial matters ranging from foreclosure defense to stopping wage garnishments.
While bankruptcy may sometimes be the best and most logical solution for a person or a business, in many other instances, a bankruptcy alternative may produce superior outcomes which leave you with more of your assets intact, and more control over your financial future.
It’s important to carefully weigh all of your options to determine the best course of action, and it’s crucial that you receive experienced and knowledgeable assistance as opposed to trying to navigate this daunting process on your own.
Call our office today at 240.395.1418 to schedule your free bankruptcy consultation in Maryland.
We’ll begin discussing your options and potential bankruptcy alternatives, and explain to you more about how we can help as your new bankruptcy attorney in Maryland.
The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. Read our full disclosure here.