Judge OKs Sale Of Alabama Aircraft To Kaiser

Law360, Wilmington (September 1, 2011, 7:06 PM EDT) -- A Delaware bankruptcy judge on Wednesday cleared troubled aircraft maintenance company Alabama Aircraft Industries Inc. to sell its assets to a unit of Kaiser Group Holdings Inc. for $500,000 and up to $30 million in recoveries from potential litigation.

U.S. Bankruptcy Judge Peter J. Walsh gave his blessing to the deal despite staunch opposition from Chicago-based aircraft giant Boeing Co. — the likely target of litigation envisioned by Alabama Aircraft.

The deal sets up a litigation trust to pursue as-yet undefined causes of action, with Kaiser...
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