Article Summary and Reaction Paper - Essay Example

Article Summary and Reaction American Airlines Files for Protection for Bankruptcy Summary of the Case Andrew Bender writes in his article in the Forbes Magazine that AMR Corporation, which is the founding company of American Eagle and American Airlines, filed for the protection of bankruptcy (Bender, 2011). Filing for protection of bankruptcy implies that the company seeks the court to protect it from its creditors for the period that it will be able to manage its financial status. The author notes that several stakeholders will be affected by the case including travelers.

However, the article indicated that such a move does not mean that the company would soon come to a halt. There were attempts to make the customers satisfied with the services that the company will offer. The hearing of the case occurred on November 30, 2011 after the company had filed the protection plea through its lawyers and other legal advisors. The airline had fought to escape the filing for bankruptcy and hoped that the court would help it to regain its status in the industry. The article expounds on the term bankruptcy.

It also introduces Chapter 11 of the U.S. Bankruptcy Code (Administrative Office of the U.S. Courts, 2015). The chapter provides for reorganization under bankruptcy situation, mainly involving partnership or cooperation. The chapter helps in the reorganization of businesses that have seriously high burden of debts. Under the chapter, the debtor proposes a plan to that would ensure profitability after bankruptcy. The article outlines the best case in which Chapter 11 of the bankruptcy code. The article outlines the applicability of the code in helping organizations restructure and present a plan for profitability.

ReferencesAdministrative Office of the U.S. Courts. (2015). Reorganization Under the Bankruptcy Code. Retrieved April 13, 2015 from http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter11.aspxBender, Andrew. (2011). American Airlines Bankruptcy: Who Loses? Forbes. Retrieved April 13, 2015 from http://www.forbes.com/sites/andrewbender/2011/11/29/american-airlines-bankruptcy-who-loses/