Judge Quashes Calls For AMR To Boost Air Fleet Protection

Law360, New York (February 29, 2012, 6:25 PM EST) -- A New York bankruptcy judge rejected U.S. Bank Trust NA's argument Wednesday that American Airlines Inc. parent AMR Corp. is letting airplanes that serve as collateral for some $450 million in notes deteriorate, ignoring calls for the debtor to provide more assurances for the fleet.

U.S. Bankruptcy Judge Sean H. Lane denied U.S. Bank's motion seeking to make the debtor provide so-called adequate protection for its continued use of 143 aircraft that are serving as collateral for the notes, for which the bank serves as trustee,...
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