Bill on Bankruptcy: AMR Make-Whole Opinion Vulnerable on Appeal

more+
less-
Jan. 23 (Bloomberg) -- The case of the week on the Bloomberg bankruptcy video is the decision by Bankruptcy Judge Sean Lane who concluded that American Airlines isn't obliged to pay several hundred million dollars in make-whole premiums even though debt would be repaid before maturity. Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle discuss how Lane's adverse ruling evidently was expected by the debt holders who believe the result may be better on appeal, if the dispute doesn't become moot in the meantime. New See more +
Jan. 23 (Bloomberg) -- The case of the week on the Bloomberg bankruptcy video is the decision by Bankruptcy Judge Sean Lane who concluded that American Airlines isn't obliged to pay several hundred million dollars in make-whole premiums even though debt would be repaid before maturity. Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle discuss how Lane's adverse ruling evidently was expected by the debt holders who believe the result may be better on appeal, if the dispute doesn't become moot in the meantime. New England Compounding Pharmacy Inc., which allegedly caused a meningitis outbreak, had been lucrative for the four owners who took out more than $16 million on $32 million of revenue in 2012. The video concludes with discussion of Sentinel Management Group Inc. where the U.S. Court of Appeals in Chicago will have an opportunity to part company with the appeals court in New York by finding loopholes in the Bankruptcy Code's so-called safe harbor for securities transactions. See less -

Embed Video

Copy

Topics:  American Airlines, Drug Compounding, Fungal Meningitis, Make-Whole Premium, Pharmacies, Safe Harbors, Sentinel Management Group

Published In: Bankruptcy Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Bloomberg Law | Attorney Advertising