Reuters: Bankruptcy News: AMR CEO, creditors to meet Tues for restructuring update-sources

Reuters: Bankruptcy News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

AMR CEO, creditors to meet Tues for restructuring update-sources Aug 14th 2012, 14:42 Tue Aug 14, 2012 10:42am EDT * American management, creditors meet for monthly meeting * Topics to include pilots rejection of labor deal * Judge slated to rule Wednesday on unilateral work terms By Soyoung Kim and Nick Brown NEW YORK, Aug 14 (Reuters) - AMR Corp Chief Executive Tom Horton is to meet creditors on Tuesday and provide an update on labor talks after pilots rejected a contract offer from the bankrupt parent of American Airlines last week, according to people familiar with the matter. Horton and other senior executives are also expected to discuss American's financial and operational performance, negotiations with its trade vendors and its ongoing review of potential mergers at a regularly scheduled monthly meeting with the airline's unsecured creditors committee Tuesday, one of the people said. American management led by Horton has met with creditors monthly to brief the group on different elements of bankruptcy restructuring. Labor uncertainty created by the pilots' rejection of a new contract offer is likely to be one of the major topics this month. The people asked not to be named because the matter is not public. American declined to comment, as did a lawyer for its creditors' committee. The meeting in New York comes a day before Judge Sean Lane, who oversees American's bankruptcy, is slated to rule on whether the third-largest U.S. carrier can abandon its current labor contract and unilaterally impose temporary work terms while the two sides continue to negotiate a long-term pact. Last week, the Allied Pilots Association, the airline's most powerful employee group, voted 61 percent to 39 percent to reject American's latest contract offer, which would have imposed about $315 million in cost cuts. Failure to reach a consensual deal could be a blow to American's efforts to develop a standalone reorganization plan, which relies on slashing debt and labor costs to return to profitability. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions