AMR Seeks To Change Retiree Benefit Plans

Law360, New York (July 6, 2012, 10:25 PM EDT) -- American Airlines Inc.’s bankrupt parent AMR Corp. on Friday sought to modify its retiree health and welfare benefits plans, whose current retiree liabilities were reported in 2010 at more than $1.3 billion, claiming it has no legal obligation to continue providing the benefits.

In an adversary proceeding in New York bankruptcy court, AMR sued a committee of retired employees, arguing that it can unilaterally modify their health and welfare benefits because it has not promised to provide the plan participants with the benefits for life, and...
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