Airlines

Hosted by the International, Legislation and Secured Credit Committees This panel will examine and discuss recent trends and issues in the chapter 11 reorganizations of airlines, including foreign-based airlines that have sought chapter 11 protection in the U.S., such as Avianca and LATAM. Additionally, the panelists will analyze governmental and legislative initiatives in the U.S. taken in response to COVID-19 that at the time staved off formal reorganization proceedings for U.S.-based airlines.

Presented by the American Bankruptcy Institute The COVID-19 pandemic has plunged the global aviation industry into its deepest crisis ever, with no recovery in sight. What happens next? This panel will look into what's happened so far and what to expect in the year(s) to come.

From the outset of AMR's chapter 11 filing in November 2011, the Creditors' Committee focused on working closely and collaboratively with the Debtors to craft innovative solutions for the airlines' labor and pension issues and to systematically evaluate AMR's restructuring alternatives, identify a path for emergence that maximized the value of the airline, and craft a confirmable plan of reorganization that would command the strong support of general unsecured creditors and other economic stakeholders. The reorganization plan that was adopted relied on the consummation of a merger with US Airways, in order to combine American's and US Airways' complementary networks, increase convenience and efficiency and provide more options for customers, as well as facilitate AMR's transformation into a profitable and sustainable global airline. This roundtable of advisors will discuss how early labor and pension strategies led to the development of a standalone business plan which then could be compared to a potential merger inside chapter 11 – preserving the synergy values for chapter 11 stakeholders. The roundtable will also discuss the unique distribution mechanism that was adopted which avoided valuation disputes during the plan confirmation process in favor of a post-emergence "market test."