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Bankruptcy Judge Approves Sales of Luxury American Airlines London Townhouse
Author: Joel R. Glucksman
Date: January 11, 2013
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A $23 million London townhouse owned by distressed company American Airlines will be sold in the coming weeks, following unions’ outrage that the company still retained the luxury residence throughout bankruptcy proceedings.
U.S. Bankruptcy Judge Sean Lane approved the sale of the five-bedroom house, which is located in an upscale neighborhood a short distance from Kensington Palace, where Prince William and Kate Middleton reside. The airline purchased the townhome in the early 1990s, and it has been used as a residence for executives “responsible for American’s international operations and for corporate functions,” said airline spokesman Sean Collins.
The airline’s unions expressed anger over the company’s decision to maintain the residence during proceedings as workers agreed to wage cuts and concessions to help keep the company afloat. Following the court’s approval of the sale to a cash buyer willing to pay 14.2 million British pounds, the unions said they are pleased with the decision. The Transport Workers Union chief James Little said that while the sale should have been completed earlier, he is pleased that the property will finally be unloaded.
“A year ago, when this ritzy asset showed up on AMR’s books, I said that when so many American Airlines workers were losing their homes it was outrageous for executives to be living in such a posh residence,” said Little. “At the time, I said American Airlines would have been Marie Antoinette’s favorite airline.”
American Airlines filed for protection under bankruptcy law in November 2011, and has since faced an onslaught of legal complications due to labor issues and embittered contract disputes with several unions.
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Bankruptcy Judge Approves Sales of Luxury American Airlines London Townhouse
Author: Joel R. Glucksman
A $23 million London townhouse owned by distressed company American Airlines will be sold in the coming weeks, following unions’ outrage that the company still retained the luxury residence throughout bankruptcy proceedings.
U.S. Bankruptcy Judge Sean Lane approved the sale of the five-bedroom house, which is located in an upscale neighborhood a short distance from Kensington Palace, where Prince William and Kate Middleton reside. The airline purchased the townhome in the early 1990s, and it has been used as a residence for executives “responsible for American’s international operations and for corporate functions,” said airline spokesman Sean Collins.
The airline’s unions expressed anger over the company’s decision to maintain the residence during proceedings as workers agreed to wage cuts and concessions to help keep the company afloat. Following the court’s approval of the sale to a cash buyer willing to pay 14.2 million British pounds, the unions said they are pleased with the decision. The Transport Workers Union chief James Little said that while the sale should have been completed earlier, he is pleased that the property will finally be unloaded.
“A year ago, when this ritzy asset showed up on AMR’s books, I said that when so many American Airlines workers were losing their homes it was outrageous for executives to be living in such a posh residence,” said Little. “At the time, I said American Airlines would have been Marie Antoinette’s favorite airline.”
American Airlines filed for protection under bankruptcy law in November 2011, and has since faced an onslaught of legal complications due to labor issues and embittered contract disputes with several unions.
If you face bankruptcy issues in your business, please call me.