Originally Posted by
austin_modern
really? Isnt bankruptcy precisely for getting out of these kind of agreements and stiffing other folks and businesses with broken contracts and financial losses?
For all other legacy airlines, bankruptcy was all about stiffing unsecured creditors.
For AA, bankruptcy has been all about renegotiating secured obligations and cramming new labor agreements down the employees' throats while paying all unsecured claims at 100%.
The Citi debt is fully secured and if rejected, AA would have to pay or surrender the collateral. AA's plan of reorganization did not propose rejecting the Citi debt - treating it instead as secured debt (properly, IMO).